China to Inject $45 Billion Into State Financial Institutions 
JPMorgan Sees ECB Raising Rates to 2.75% in December 
U.S. Payrolls Seen Rebounding in August as Labor Market Stays Soft 
US Oil Blockade Deepens Iran’s Economic Crisis 
Gold Holds Near $4,400 as Fed Hike Bets Rise 
Singapore Straits Times Index Hits Record High as Banks, Property Stocks Rally 
Asian Currencies Mixed as Yen Rallies on BOJ Bets 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
OPEC+ Expected to Hold October Oil Output Steady 
Chinese AI Stocks Rally After OpenAI Launches GPT-6 Astra 
China Expands Influence in Global Gold Market 
Asian Stocks Rally as AI Optimism Fuels Chipmaker Surge 
European Stocks Flat as Iran Tensions, ECB Rate Hike Loom 
ECB Set for September Rate Hike as Energy Prices Fuel Inflation 
Oil Prices Rise as Hormuz Tensions Threaten Supply 
US Stock Futures Mixed as Strong Jobs Data Boosts Fed Rate Hike Bets 
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The U.S. dollar extended its rally for a fifth consecutive session on Friday, posting its strongest weekly performance in more than nine months as investors increased expectations for further Federal Reserve interest rate hikes. Rising inflation concerns, higher Treasury yields, and ongoing geopolitical tensions fueled demand for the greenback as a safe-haven asset.
The U.S. Dollar Index climbed 0.5% to 99.30 and gained 1.4% for the week after stronger-than-expected U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data highlighted persistent inflation pressures. Analysts noted that soaring oil prices linked to the Iran conflict are significantly impacting energy and food costs, while artificial intelligence infrastructure spending is adding pressure to core inflation.
Wells Fargo economists now expect U.S. core PCE inflation, the Federal Reserve’s preferred inflation gauge, to peak at 3.5% in the second quarter before ending the year at 3.1%. As a result, markets increased their bets on future Fed rate hikes, with prediction platform Kalshi showing a 60% probability of a rate increase before July 2027.
Meanwhile, a sharp global bond sell-off intensified across major economies. U.S. 10-year Treasury yields reached their highest level in nearly a year, while the 30-year Treasury yield crossed the critical 5% mark for the first time since 2007. Rising bond yields in Japan and the United Kingdom also reflected growing investor concerns over persistent inflation and tighter monetary policy.
Investor sentiment was further weakened by President Donald Trump’s China visit, which concluded with limited progress on trade, artificial intelligence cooperation, and the Iran conflict. Although Trump claimed China agreed to increase purchases of U.S. oil, Boeing aircraft, and agricultural products, detailed agreements were not disclosed.
In Asia, the Indian rupee hit a record low against the U.S. dollar as rising crude oil prices, capital outflows, and concerns over India’s import costs pressured the currency. The Japanese yen and Chinese yuan also weakened against the strengthening dollar.
