Powell Hints Fed Would Have Cut Rates Without Tariff Pressures — High Inflation Delays Rate Moves, Markets Now Expect Easing to Start in 2025

Federal Reserve Chair Jerome Powell noted that if not for the recent U.S. tariff hikes, interest rate cuts would have already begun. Elevated inflation and market uncertainty have put policy changes on hold for now. However, markets are anticipating rate cuts to resume in 2025, with projections suggesting a potential decline in interest rates to around 2.25% by the end of 2027.

June U.S. Jobs Report Reveals Signs of Economic Slowdown, Influencing Fed Rate Outlook and Global Markets

June’s U.S. jobs report is in the spotlight this week, and the results could heavily influence the Federal Reserve’s next move on interest rates. While headline figures appear solid, job growth is becoming increasingly concentrated in a few sectors, and overall labor market breadth is narrowing—both signs that economic momentum may be cooling. For investors, this data could shift market expectations around the U.S. dollar, bond yields, and overall risk appetite. Staying informed will be key as the numbers unfold.

Canada Drops Digital Services Tax: Improved U.S.-Canada Ties Boost Tech Stocks — What Hong Kong Investors Should Watch in Global Capital Flows

Canada’s decision to withdraw its proposed digital services tax marks a significant step forward in U.S.–Canada trade relations. The move not only eases the risk of a tariff dispute but also paves the way for renewed negotiations on a bilateral economic and security partnership. This policy shift benefits major tech companies such as Google and Amazon, potentially boosting North American tech stocks.

For investors in Hong Kong, staying informed on this development could offer valuable insights into shifting global capital flows and evolving market trends.

Trump Hits Back at Canada’s Digital Tax with Tariffs and Trade Talks Freeze — Tech, Auto, and Energy Supply Chains at Risk

U.S. President Donald Trump has announced the suspension of bilateral trade talks with Canada in response to the country’s upcoming implementation of a digital services tax. In addition, new tariffs will be imposed on Canadian goods, reigniting tensions in U.S.-Canada trade relations. This move could disrupt key sectors across the North American supply chain, including technology, automotive, and energy. Investors should stay alert to shifting risks in the region’s economic landscape.

Trump Announces U.S.-China Trade Deal: Investors Eye Key Details as Hong Kong Tech and Manufacturing Stocks Gain Momentum

U.S. President Donald Trump has announced a trade agreement with China, drawing close attention from the markets as investors await further details. While the deal signals a potential thaw in U.S.-China relations, the lack of clarity has led to cautious sentiment among traders. The agreement could have a notable impact on Hong Kong’s stock market, with particular optimism surrounding the tech and manufacturing sectors.

U.S. Economy Shrinks 0.5% in Q1 — First Contraction in Three Years Raises Recession Fears

The U.S. economy unexpectedly contracted at an annualized rate of -0.5% in the first quarter, marking the first economic shrinkage in three years. Weaker consumer spending, a surge in imports, and persistent inflation were the key factors weighing on growth, raising concerns about the outlook for the U.S. economy.

British Pound Hits Near Four-Year High Against US Dollar Amid Weakening Greenback and Shifting Capital Flows

The British pound has climbed to its highest level against the U.S. dollar in nearly four years, breaking past the 1.3770 mark. This surge is driven by several key factors: pressure on the dollar due to shifts in Federal Reserve leadership, supportive technical indicators, and changing capital flows. With markets closely watching whether Jerome Powell will remain as Fed Chair—and how that decision could shape the future of U.S. monetary policy—the pound may continue to benefit in the short term. This trend presents a potential opportunity for investors paying attention to currency markets.

Brent Crude Rebounds to $68 as OPEC+ Talks and Middle East Tensions Drive Oil Prices

Oil prices have seen short-term fluctuations recently due to geopolitical tensions, but overall remain range-bound. Brent crude has rebounded to around $68 per barrel, as market attention shifts toward the upcoming OPEC+ meeting in July and developments in the Middle East. Investors should closely monitor changes in supply and demand, as well as policy shifts, to better anticipate oil price trends.

Pound Strengthens on Economic Data and Inflation Support as Markets Eye Bank of England Governor’s Speech and Geopolitical Risks

The euro has been losing ground against the British pound in recent days, as the pound finds support from solid UK economic data and persistent inflationary pressure. All eyes are now on Bank of England Governor Andrew Bailey’s upcoming speech, which could offer critical insight into the pound’s future direction. Meanwhile, geopolitical tensions and fluctuations in Middle East oil prices remain major risk factors that may impact currency markets. For investors looking to stay ahead in the evolving forex landscape, keeping a close watch on central bank signals and global developments is essential.

Trump Pressures Fed, Sends Dollar Tumbling—Tech Stocks and Gold Surge, Shifting Asset Allocation Strategies

Former President Trump ramped up pressure on the Federal Reserve, sparking concerns over the central bank’s independence in shaping monetary policy. In response, the U.S. dollar index plunged to a three-year low. The weakening dollar provided a strong boost to tech stocks and gold prices, leading to broad gains across risk assets. Investors should keep a close eye on U.S. economic data and policy developments, and consider rebalancing their portfolios accordingly.

U.S. Consumer Confidence Falls to 93 in June Amid Rising Economic and Job Market Concerns

In June, U.S. consumer confidence unexpectedly dropped to 93.0—the lowest level in recent years—highlighting growing concerns about the economy and job market. Uncertainty surrounding trade policies and declining expectations are putting pressure on consumer sentiment, leading to more cautious spending behavior. This shift could pose headwinds for the stock market and economic growth in the second half of the year. Investors should closely monitor these developments for potential risks and opportunities.

Powell’s Congressional Testimony Signals Fed May Hold Rates Steady Until After September

Federal Reserve Chair Jerome Powell’s latest testimony to Congress indicates that the central bank is adopting a wait-and-see approach on interest rates, with no immediate plans to cut. Persistent inflation pressures and evolving trade tensions between the U.S. and China have led the Fed to stick with its data-driven strategy, allowing for flexibility as economic conditions unfold. Investors are now eyeing September as the earliest window for any potential policy shift.