Strong risk sentiment prevailed today as global markets responded to a renewed U.S. China trade truce, rising hopes for a Fed rate cut, corporate buying driving Ether to record highs, and Japanese equities edging up.
U.S.–China Extend Tariff Truce, Global Markets React Positively
President Trump signed an executive order extending the U.S. China trade truce by 90 days, postponing aggressive tariff hikes slated for November. This move sustained current duties, 30% on Chinese imports and 10% on U.S. goods, and stabilized trade tensions ahead of the holiday season. Markets welcomed the extension: Asia-Pacific stocks rallied and global indices gained support from renewed optimism around trade diplomacy.
Fed Rate-Cut Odds Surge After Modest Inflation Data
July’s U.S. Consumer Price Index rose 2.7% year-over-year, slightly below expectations, while core inflation came in at 3.1%, keeping Fed policymakers’ options open. Consequently, futures traders dramatically increased odds for a September rate cut, with probabilities climbing as high as 98%. Economist Jeremy Siegel even suggested a possible 50 basis-point cut, citing dovish Fed board support and continued policy easing.
Ether Nears Record High as Corporations Accumulate
Ether (ETH) surged to around $4,861, nearing its all-time high, driven by a wave of institutional and corporate accumulation. Analysts note that such sharp rallies in the crypto market often precede periods of profit-taking or increased regulatory scrutiny, including potential tariff or tax adjustments in jurisdictions that monitor digital asset flows. While sentiment remains bullish, traders are cautious about the historical tendency for rapid gains to be followed by corrective phases.
Gold Steady on Fed Easing Signals and Geopolitical Watch
Gold prices remained stable, buoyed by growing expectations of Fed rate cuts and anticipation of discussions between Trump and Putin. Safe-haven demand continues to support bullion, underpinned by broader macroeconomic uncertainties.
Japanese Equities Inch Up as Global Sentiment Brightens
Japan’s Nikkei 225 closed higher with a modest gain, reflecting improved investor confidence tied to easing trade tensions and dovish central bank expectations
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