Earnings season is turning more defensive, but the weakness is not everywhereBank of Korea links Kospi’s wild swings to leverage both at home and abroadKorea Exchange to launch real time trading through to 8pm from September 14Trump ties $5,000 payment promise to a full Republican midterm sweepWeak yen, oil costs and food prices in focus as BOJ’s Masu talks hikesWhat the September futures rollover means for traders, ES and NQ as examplesGold steady near $4,400 as traders brace for US inflation dataPBOC sets USD/ CNY reference rate for today at 6.7766 (vs. estimate at 6.7074)Euro braces for ECB tone today as ING sees a 25bp hike either wayConstruction surges at suspected Iran nuclear site as US eyes “deep strikes” (cough …)Trump aides privately warn Iran war could last his full term, WSJ reportsBig day ahead in China – to detail financial power plans at 3pm Beijing briefing with PBoCBond yields hit highest since 2023 as stocks fall, oil tops $100 and buyback misfiresHSBC warns oil market is now “tighter for longer”, raises Brent forecast even higherinvestingLive Americas FX news wrap 9 Sept: Oil is a problem as war likely to continueGermany has drafted a plan to end the country’s tax exemption for cryptoOil: Private survey of inventory shows a headline crude oil draw smaller than expected
Summary:
Oil prices traded roughly sideways after this week’s earlier rally, with sporadic reports of continued fighting in the Middle EastGold held near $4,400 an ounceBank of Japan board member Kazuyuki Masu said the BOJ is expected to keep raising rates, citing oil, food, producer price and yen driven inflation risks ahead of the central bank’s September 17 to 18 policy meetingUSD/JPY traded in a two way range that was not especially wide, with major FX pairs broadly steady ahead of US producer price data due later ThursdayPresident Trump said Republicans would issue $5,000 “dividend” checks to every American if the party retains control of both the House and Senate, a pledge that would cost more than $1.3 trillion and add to an already large deficit if it ever happened, with the chances of a full Republican sweep considered lowGermany’s finance ministry has drafted a bill to end the country’s one year crypto tax exemption, applying a flat 25% rate to gains on assets bought after January 1, 2027, with automatic withholding by trading platforms reportedly following from 2028
Oil prices traded largely sideways on Thursday, consolidating after a solid run higher earlier in the week, with sporadic reports of continued fighting in the Middle East keeping a floor under the market without driving fresh gains. Gold held steady near $4,400 an ounce as investors positioned ahead of key US inflation data.
In Japan, Bank of Japan board member Kazuyuki Masu said the central bank is expected to continue raising interest rates, pointing to a combination of oil, food, producer price and yen driven inflation risks. His comments come ahead of the BOJ’s next policy meeting on September 17 and 18, which markets widely expect to produce a further hike. USD/JPY traded in a two way fashion within a relatively contained range, while major currency pairs broadly held steady across the board as traders awaited the US producer price index, due later in the US morning, for clues on the path of Federal Reserve policy.
On the political front, President Trump said Republicans would issue $5,000 dividend checks to every American citizen if the party wins full control of Congress in November’s midterms. The pledge would cost upward of $1.3 trillion and would add to an already substantial budget deficit if it were ever implemented. While the probability of Republicans sweeping both chambers is considered low, the scale of the proposal underscores how large a fiscal commitment is now being floated as a campaign promise.
In cryptocurrency markets, Germany’s finance ministry has drafted legislation that would end the country’s one year tax exemption on crypto gains, replacing it with a flat 25% rate on assets acquired after January 1, 2027, with automatic withholding by trading platforms expected to begin in 2028. The draft has yet to reach parliament. The move targets one of Europe’s more crypto friendly tax regimes, and for now its main effect is likely to be on sentiment rather than price, since it applies only to future acquisitions and remains unlegislated. A confirmed timeline could still prompt longer term German holders to reassess when to realise gains, particularly those weighing a sale under the current exemption before any new rules take effect.
This article was written by Eamonn Sheridan at investinglive.com.