Key Takeaways
- US Two-Year Treasury Yields are nearing their lowest point since May, dropping by almost six basis points to 3.67%, signaling strong market expectations for potential Federal Reserve interest rate cuts.
- Paramount Skydance (PSKY) stock saw a 2.3% drop in premarket trading, following a significant 37% surge in the previous session driven by a $7.7 billion, seven-year UFC rights deal.
- Gold prices are holding steady, rising for a third consecutive session, as market participants increasingly bet on a Federal Reserve rate cut in September, with some analysts pointing to a potential 50-basis-point reduction.
- The US and China have officially extended their tariff truce for another 90 days until November 10, 2025, preventing a surge to triple-digit duties and offering short-term relief for global trade.
- Russia's Special Envoy and Head of its Sovereign Wealth Fund, Kirill Dmitriev, is confirmed to participate in the upcoming Trump-Putin summit in Alaska on Friday, August 15, where discussions are expected to focus on a Ukraine peace deal.
Market Movements and Central Bank Watch
US Two-Year Treasury Yields are currently hovering near their lowest levels since May, falling by almost six basis points to 3.67%. This decline reflects growing market anticipation of a Federal Reserve interest rate cut. The benchmark 10-year Treasury yield also dropped by nearly six basis points to 4.23%, nearing its early May range low of 4.19%. Treasury Secretary Scott Bessent has notably called for the Federal Reserve to lower interest rates, suggesting a potential 50-basis-point reduction in September. Traders are now pricing in a near-certain September rate cut, with some even placing 6% odds on a larger half-point trim.
This dovish sentiment from the market and official comments has contributed to a weakening US dollar, making the Japanese yen a primary beneficiary. Traders are increasing their bets against the dollar, with the yen climbing to its strongest level against the greenback since September, briefly trading around ¥140.
In other central bank news, the Norges Bank is holding a monetary policy decision press conference today at 9:30 BST. The bank previously reduced its policy rate by 0.25 percentage points to 4.25% on June 18, 2025.
Corporate and Geopolitical Developments
Paramount Skydance (PSKY) stock experienced a 2.3% drop in premarket trading this morning. This follows a substantial 37% increase in the previous session, which was fueled by the announcement of a $7.7 billion, seven-year agreement to acquire exclusive broadcasting rights for Ultimate Fighting Championship (UFC) events. The company, recently formed from the merger of Paramount Global and Skydance Media, began trading as a combined entity on August 8.
In corporate leadership, Standard Bank Group (SBK) Chief Executive Officer Sim Tshabalala is slated to step down by the end of 2027. Tshabalala is currently serving in a dual capacity as Group CEO and interim CEO of Standard Bank South Africa (SBSA), a role he assumed on April 8, 2025.
Geopolitical developments are also in focus, with Russia's Special Envoy and Head of its Sovereign Wealth Fund, Kirill Dmitriev, confirmed to participate in the upcoming Trump-Putin summit in Alaska. The summit, scheduled for Friday, August 15, is expected to address a potential peace deal for Ukraine.
Further easing global trade tensions, the United States has officially published an order extending the China tariff truce for another 90 days. This extension, now effective until November 10, 2025, prevents the imposition of previously planned triple-digit tariffs, providing crucial short-term relief for supply chains ahead of the critical holiday season.
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.