US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Japan Producer Inflation Hits 7.1% in June, Fueling BOJ Rate Hike Expectations 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
European Regulators Clash With U.S. Treasury Over Private Credit Transparency 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
The People’s Bank of China (PBOC) held its benchmark loan prime rate (LPR) steady on Monday, aligning with market expectations and emphasizing its shift toward fiscal tools to support growth rather than further monetary easing. The one-year LPR remains at 3.1%, while the five-year LPR, a key reference for mortgage rates, stays at 3.6%—both at historic lows following a series of rate cuts in recent years.
The LPR, which influences lending costs across China, is determined based on quotations from 18 major banks. Although previous rate reductions offered temporary economic relief, the PBOC now has limited room for additional cuts. As a result, Chinese policymakers are pivoting to fiscal measures to drive domestic demand and stabilize key sectors.
Recent government proposals include expanded social welfare programs and subsidies for consumer goods to stimulate household spending. These steps are part of a broader effort to counter headwinds facing the world’s second-largest economy.
China’s GDP grew 5.4% in the first quarter of 2025, beating expectations and reflecting a strong rebound in consumer activity and targeted support policies. The solid start to the year highlights the effectiveness of ongoing stimulus efforts, even as broader challenges remain.
Investor sentiment, however, remains subdued amid rising trade tensions with the United States. Washington’s latest tariff actions, which include tighter restrictions on Chinese tech and manufacturing imports, pose a significant risk to China’s export-driven economy. As external pressures mount, Beijing’s reliance on domestic consumption and fiscal intervention is likely to deepen.
The PBOC’s decision to keep rates steady underscores a strategic balancing act—maintaining financial stability while encouraging economic recovery through non-monetary means.
