{"id":65974,"date":"2026-08-04T22:08:14","date_gmt":"2026-08-05T02:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-chinas-slowing-services-growth-and-potential-us-iran-breakthrough\/65974\/"},"modified":"2026-08-04T22:08:14","modified_gmt":"2026-08-05T02:08:14","slug":"global-markets-react-to-chinas-slowing-services-growth-and-potential-us-iran-breakthrough","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-chinas-slowing-services-growth-and-potential-us-iran-breakthrough\/65974\/","title":{"rendered":"Global Markets React to China\u2019s Slowing Services Growth and Potential US-Iran Breakthrough"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>China\u2019s services sector growth slowed significantly in July<\/strong>, with the <strong>RatingDog Services PMI<\/strong> falling to <strong>50.4<\/strong> from June&#39;s <strong>54.1<\/strong>, missing market expectations of <strong>53.7<\/strong>.<\/li>\n<li><strong>US Treasury Secretary Scott Bessent<\/strong> signaled that a deal with <strong>Iran<\/strong> to reopen the <strong>Strait of Hormuz<\/strong> could be reached &quot;today or tomorrow,&quot; leading to a <strong>sharp decline in crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a><\/strong>.<\/li>\n<li><strong>Toyota (<a href=\"\/stock\/7203\">7203<\/a>)<\/strong> is set to resume production at three <strong>Fukuoka<\/strong> plants following disruptions caused by a <strong>7.1-magnitude earthquake<\/strong> in southern Japan.<\/li>\n<li><strong>Takeda Pharmaceutical (<a href=\"\/stock\/TAK\">TAK<\/a>)<\/strong> is seeking to include its <strong>Qdenga (TAK-003)<\/strong> dengue vaccine in <strong>India\u2019s national immunization program<\/strong> after receiving landmark regulatory approval.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a><\/strong> rose to approximately <strong>$4,080\/oz<\/strong> as investors balanced geopolitical uncertainty in the Middle East against shifting expectations for <strong>Federal Reserve<\/strong> interest rate hikes.<\/li>\n<\/ul>\n<h2>China\u2019s Economic Momentum Cools<\/h2>\n<p>China\u2019s private-sector activity showed signs of a sharp moderation in July. The <strong>RatingDog China General Services PMI<\/strong> plummeted to <strong>50.4<\/strong>, its lowest level since late 2024, as domestic demand weakened and business sentiment softened to levels not seen since the early pandemic. The <strong>Composite PMI<\/strong>, which includes manufacturing, also slipped to <strong>50.8<\/strong> from <strong>53.6<\/strong>, indicating that while the economy remains in expansionary territory, the pace of recovery is losing steam.<\/p>\n<p>Despite the headline slowdown, there were pockets of resilience. <strong>Services exports<\/strong> grew for the third consecutive month, and firms continued to add staff, albeit at a slower rate. <em>Analysts suggest that the near-term trajectory of the Chinese economy will depend heavily on whether Beijing introduces further stimulus to bolster consumer confidence.<\/em><\/p>\n<h2>Geopolitical Shifts and Energy Markets<\/h2>\n<p>In a major development for global energy security, <strong>U.S. Treasury Secretary Scott Bessent<\/strong> told media outlets that a diplomatic breakthrough with <strong>Iran<\/strong> is imminent. The proposed deal aims to restore &quot;freedom of movement&quot; in the <strong>Strait of Hormuz<\/strong>, a critical portal for one-fifth of the world&#39;s oil and liquefied natural gas.<\/p>\n<p>While <strong>Tehran<\/strong> has publicly denied direct negotiations with Washington, mediating partners including <strong>Qatar<\/strong> and <strong>Oman<\/strong> confirmed that active diplomatic coordination is at a &quot;very progressive stage.&quot; <em>The prospect of a reopened strait triggered a 4% drop in crude oil prices, easing global inflation fears and providing a boost to U.S. equity markets.<\/em><\/p>\n<h2>Industrial and Healthcare Developments in Asia<\/h2>\n<p><strong>Toyota (<a href=\"\/stock\/7203\">7203<\/a>)<\/strong> announced it will restart operations at its <strong>Miyata<\/strong>, <strong>Kanda<\/strong>, and <strong>Kokura<\/strong> factories in Fukuoka starting with the Thursday midday shift. The plants were idled following a powerful earthquake on July 28 that damaged local infrastructure and disrupted supply chains. The resumption is expected to ease concerns over production losses for popular <strong>Lexus<\/strong> models, including the <strong>RX<\/strong> and <strong>NX<\/strong> SUVs.<\/p>\n<p>In the healthcare sector, <strong>Takeda Pharmaceutical (<a href=\"\/stock\/TAK\">TAK<\/a>)<\/strong> is moving to scale its presence in <strong>India<\/strong> after its <strong>Qdenga<\/strong> vaccine became the first dengue shot approved in the country. The company is now aiming for the vaccine&#39;s inclusion in India&#39;s official shots program to combat a disease that affects millions annually. <strong>Takeda<\/strong> has already partnered with Hyderabad-based <strong>Biological E<\/strong> to manufacture up to <strong>100 million doses<\/strong> per year by the end of the decade.<\/p>\n<h2>Fixed Income and Currency Markets<\/h2>\n<p>The <strong>Bank of Korea<\/strong> conducted an auction for 2-year <strong>Monetary Stabilisation Bonds<\/strong>, with the average yield set at <strong>3.605%<\/strong>. This comes as South Korean bond yields have eased slightly over the past month, reflecting broader regional trends. Meanwhile, in currency markets, the <strong>Chinese yuan<\/strong> showed slight strength at the open, trading at <strong>6.7483 per USD<\/strong> as markets digested the latest PMI data and the potential for de-escalation in the Middle East.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s services sector growth slowed significantly in July, with the RatingDog Services PMI falling to 50.4 from June&#39;s 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