Financial markets are reacting to a mix of economic forecasts, corporate developments, and evolving trade relations. HSBC (HSBA) has demonstrated renewed confidence in China's economic trajectory by upgrading its GDP growth forecasts for both 2025 and 2026. The bank's revised outlook suggests stronger-than-expected activity in the first half of 2025 and a significant reduction in US-China tariffs. Concurrently, market observers anticipate that China will likely step up monetary easing efforts in the latter half of this year, potentially through benchmark interest rate cuts, to further bolster economic momentum.
In corporate news, Adani Enterprises (ADEL) has issued a firm denial regarding any potential tie-up with Chinese electric vehicle manufacturer BYD (BYDDY,(/stock/002594)) or solid-state battery specialist Beijing Welion New Energy Technology Co. Ltd.. Beijing Welion, founded in 2016, is known for its work in solid-state batteries for EVs and energy storage systems.
Geopolitical and trade discussions remain prominent. Japanese Prime Minister Shigeru Ishiba has expressed his willingness to meet with former U.S. President Donald Trump to push for a 15% reduction in U.S. auto tariffs. This comes as Japan considers compiling an extra budget to cushion the economic blow from these tariffs, which currently stand at 25% for automobiles and auto parts. Separately, a Trump advisor has accused India of funding the Ukraine conflict through its purchases of Russian oil, adding another layer of complexity to international relations.
Economic data from Switzerland indicates a slight uptick in inflation. The Swiss Consumer Price Index (CPI) for July rose to 0.2% year-over-year, exceeding the estimated 0.1%. On a month-over-month basis, the CPI remained unchanged at 0.0%, while the EU Harmonized CPI increased by 0.3% month-over-month and 0.1% year-over-year. Notably, the core CPI (excluding food and energy) climbed to 0.8% year-over-year, surpassing the 0.6% estimate.
In the bond markets, Japan's government bond yields continued their ascent. The 40-year government bond yield climbed by 2 basis points to 3.38%, while the 30-year bond yield rose by 1 basis point to 3.11%. This movement in longer-term yields reflects ongoing market dynamics and investor sentiment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.