Bank of Canada Survey Signals Renewed Confidence — What Hong Kong Investors Should Know About Global Trade and Policy Risks

A recent economic survey from the Bank of Canada reveals that business concerns over tariffs have eased slightly, leading to a modest recovery in confidence. However, elevated uncertainty in global trade continues to weigh on sentiment, prompting most companies to remain cautious in their strategies. Diverging expectations around inflation and interest rates highlight ongoing market hesitation. For investors in Hong Kong, staying attuned to shifts in Canadian monetary policy is essential for optimizing capital allocation and managing risk in an increasingly volatile global environment.

US-Europe Trade Talks Near Final Stage as August Tariff Deadline Raises Global Market Risk Concerns

U.S.-EU trade talks are in the final stretch, with the August 1 tariff deadline fast approaching. Global markets are watching closely to see if the two sides can strike a deal in time. Failure to reach a compromise could trigger a new wave of trade tensions, posing serious risks to the global economy and disrupting already fragile supply chains.

U.S. Housing Market Forecast 2025: High Interest Rates and Buyer Fatigue Weigh on Builder Confidence and Slow Supply

As the U.S. housing market moves into the second half of 2025, it faces a tough balancing act between stubbornly high interest rates and declining buyer affordability. Homebuilder confidence continues to wane, and the pace of new construction is slowing, tightening supply in many areas. At the same time, home prices are beginning to adjust, with growing divergence between regions. These shifts are adding new layers of uncertainty to an already complex market. Stay informed with the latest real estate trends and key indicators shaping the future of housing.

US Dollar Surges Past 147.90 Yen to Hit 5-Month High, Driven by Strong US Data and Weaker Yen

The U.S. dollar climbed past 147.90 against the Japanese yen, hitting its highest level in nearly five months. This surge was driven by stronger-than-expected U.S. retail sales and growing market expectations surrounding future trade policy shifts. Resilient consumer spending continues to bolster the greenback, while the yen remains under pressure due to ongoing economic weakness in Japan. Investors are closely watching the Federal Reserve’s next moves and the Bank of Japan’s policy stance. In the short term, USD/JPY appears to have further room to rise.

Fed Headquarters Renovation Sparks Debate: Powell Defends $2.5 Billion Budget as Necessary and Fiscally Responsible

The Federal Reserve’s $2.5 Billion Headquarters Renovation Draws Political Scrutiny

A proposed $2.5 billion renovation of the Federal Reserve’s historic headquarters is drawing political attention, with lawmakers questioning the scale and necessity of the project. In a rare move, Fed Chair Jerome Powell personally reached out to the White House to explain the rationale behind the overhaul. Powell emphasized that the renovation is both essential and compliant with all relevant regulations, assuring that the central bank remains committed to fiscal responsibility and rigorous oversight.

Curious how the Federal Reserve plans to balance preserving the building’s historic integrity while meeting modern operational needs? Click here to explore the full story.

U.S. Retail Sales Rise 0.6% in June 2025, Surpassing Expectations as Consumer Spending Signals Economic Resilience

U.S. retail sales rose by 0.6% month-over-month in June 2025, beating market expectations and signaling strong consumer resilience. Despite persistent inflation and economic uncertainty, American households continue to spend on essentials and premium brands. Brick-and-mortar retail and the food service industry are showing signs of recovery, reflecting a shift toward a post-pandemic spending normal. Going forward, interest rates and consumer confidence will remain key factors influencing economic momentum.

Trump’s Policy Comeback Shakes Global Markets — 6 Key Trends Every Investor Must Watch for Smart Asset Allocation

Trump’s Policies Make a Comeback, Triggering Market Volatility and New Investment Opportunities

As Trump-era policies reemerge, global markets are entering a new phase of uncertainty—and potential upside. From a renewed trade war and aggressive tax reforms to shifting geopolitical alliances and industrial realignments, six key trends are beginning to shape the investment landscape. In this analysis, we break down the resurgence of the “Trump Trade” and reveal strategic insights to help investors stay ahead of the curve, protect their portfolios, and uncover growth opportunities amid the turbulence.

Japanese Yen Slides Further: USD/JPY Breaks 148.85, Eyes 150 Level

The Japanese yen continues to weaken against the US dollar, weighed down by disappointing export data and expectations of ongoing monetary easing by the Bank of Japan. The USD/JPY pair has broken above the 148.85 level, with technical indicators pointing to further upside potential—possibly testing the 150 or even 151 mark. Unless there are signs of an economic rebound, the dollar’s strength is likely to persist. Investors should closely monitor yen fluctuations and remain aware of potential currency-related risks.

U.S. Inflation Matches Expectations in June, Core CPI Slightly Below Forecast; Tariff Risks Could Push Prices Higher and Influence Fed Policy

U.S. inflation data for June came in as expected, with the Consumer Price Index (CPI) rising 2.7% year-over-year. Core inflation—a measure that excludes food and energy—came in slightly below market forecasts. However, a new round of tariffs could drive up the cost of goods, adding pressure to inflation. The Federal Reserve is closely watching for potential impacts on the broader economy, while investors are paying close attention to how companies plan to respond in their upcoming earnings reports.

China’s Q2 2025 GDP Beats Expectations, but Weak Consumer Demand and Housing Market Raise Concerns

China’s economy grew by 1.1% in the second quarter of 2025, slightly outpacing market expectations. This suggests that recent efforts to stabilize growth are beginning to show results. However, momentum remains fragile amid sluggish domestic demand, a continuing slump in real estate investment, and persistent external risks. Whether policymakers step up support will be a key factor in determining the economy’s trajectory going forward.

Bank of Japan May Raise Rates Again in October as Inflation and Price Pressures Mount

The Bank of Japan may raise interest rates again in October, drawing renewed attention from global markets. A former chief economist noted that with reduced trade uncertainty and rising inflation, the likelihood of another rate hike has increased. Japan’s current interest rate sits at 0.5%, the highest level since 2008. A surge in core consumer prices, along with climbing rice and oil costs, is putting additional pressure on policymakers. Investors should closely watch the central bank’s meetings in July and October, as these will be pivotal in shaping the future direction of Japan’s interest rate strategy.

EUR/USD Eyes Key Technical Support at 1.1670, Could Test 1.2000 by Year-End

The euro has seen increased volatility against the US dollar recently, drawing attention to the key support level at 1.1670. With shifting policy dynamics and trade developments between the EU and the US, a short-term technical rebound is possible. Key resistance levels are now at 1.1765 and 1.1800. If Europe’s economic fundamentals remain stable, the euro could potentially test the 1.2000 mark by year-end. Forex traders should closely monitor central bank policies and market sentiment in both regions to stay ahead of currency market trends.