A Jolly Good Show on the Markets

Published on July 31, 2025 – 02:23

H2: A Buoyant Day for U.S. Markets

Oh, what a delight it was to witness U.S. equity-index futures on the rise, particularly with megacap tech companies showing robust earnings. After a bit of a topsy-turvy session on Wall Street, this was indeed a refreshing outcome. Contracts for the Nasdaq 100 went up by a commendable 1.1%, and the S&P 500 advanced 0.8% thanks to Microsoft and Meta Platforms shining in after-hours trading.

Meanwhile, in Asia, shares showed a slight downturn. South Korean equities were quite the spectacle as they fluctuated following a new trade agreement with the U.S. On the flip side, Japan’s Nikkei-225 showed some positive movement, rising by 0.3%, ahead of a decision from the Bank of Japan expected later on.

H2: The Copper Surprise

Quite interestingly, copper saw an uptick in London. President Donald Trump had a little hand in that by exempting refined metal from U.S. import tariffs. One couldn’t help but notice the buzz among traders after such a surprise move.

H2: The Federal Reserve’s Steady Hand

Wednesday was a bit peculiar with the S&P 500 dipping by 0.1%, while Treasury 10-year yields rose five basis points. It marked the stickiest Fed day since December. The dollar was the talk of the town, strengthening by 0.8% as Fed Chair Jerome Powell mentioned no decision on policy easing for September. He noted a solid U.S. labor market with inflation still above target.

Investors seemed to have adjusted their expectations, not rushing to assume imminent rate cuts. Instead, they believed in continued growth, driven by an AI-boosted earnings bonanza and manageable goods inflation.

H3: South Korea’s Trade Dance

South Korea grabbed quite a few headlines. Mr. Trump disclosed a trade deal imposing a 15% tariff on its exports to the U.S. However, Seoul agreed to $350 billion in investments in the States. All eyes were on South Korean markets to see how they would react.

H3: India’s New Tariffs and Asian Market Watch

India wasn’t left out, with a 25% tariff on its exports starting Friday. Moreover, there was a looming penalty over energy purchases from Russia. The rupee weakened in offshore trading, and contracts for the Nifty 50 reversed gains to decline by 0.5%.

Elsewhere in Asia, investors were eagerly awaiting the Bank of Japan’s impending rate decision.

H2: Economists Weigh In

The Federal Open Market Committee (FOMC) voted 9-2 to keep the benchmark rate at 4.25%-4.5%. Christopher Waller and Michelle Bowman were the only dissenters, opting for a quarter-point cut instead.

Now, traders seem less inclined to expect rate cuts this year. Bets on a cut in September have dwindled, while the October odds have dropped to around 85%.

H3: Employment and Growth Figures

In the world of economic data, U.S. companies ramped up hiring in July. ADP Research indicated a private-sector payroll increase of 104,000, surpassing economist projections of 76,000.

As we look towards Friday’s employment report from the Bureau of Labor Statistics, expectations suggest moderate job growth and a rise in unemployment.

Preliminary government data revealed a 3% annualized increase in GDP for the second quarter. Though quite solid, it was cooler than the previous year’s average growth of 1.25%.

H2: The Corporate Front

There was quite a stir in corporate news. Samsung’s semiconductor division fell short of profit expectations, indicating trouble in the memory chip sector. Conversely, Chinese battery titan, Contemporary Amperex Technology, enjoyed a 34% profit surge. Their outlook looks bright with a remarkable share sale in Hong Kong underpinning global expansion.

Meta Platforms is optimistically eyeing further investment in AI, while Microsoft commits over $30 billion to enhance data centres for AI services.

Tables and Tickers

Market Movement:

Currencies and Commodities:

• Dollar Spot Index: Steady

• Euro: +0.3% to $1.1434

• Japanese Yen: +0.2% to 149.23 per dollar

• Bitcoin: +0.7% to $117,949.92

• Ether: +1.1% to $3,811.95

• WTI Crude: +0.5% to $70.36 a barrel

• Gold: +0.3% to $3,285.68 an ounce

This splendid day in the markets was certainly a sight to behold, as conditions and expectations shifted like the English weather. Let’s keep our teacups ready and watch closely for what’s next in the financial realm.

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