1. Asia markets trade mixed after Wall Street declines as investors await Fed decision
Japan’s benchmark Nikkei 225 surpassed the 45,000 mark for the first time, leading gains in Asia-Pacific markets Monday, after President Donald Trump said that the U.S.-China trade negotiations in Spain were progressing well. The trade talks were overshadowed by a “framework” deal regarding the divestment of Chinese-owned TikTok, announced by Treasury Secretary Scott Bessent Monday. Speaking from Madrid, Bessent noted that the commercial terms have already been settled. Both U.S. President Donald Trump and Chinese President Xi Jinping will speak on Friday to discuss the terms. Japan’s Topix gained 0.41% to an all-time high of 3,172.33.
2. S&P 500 eases a bit from record as traders await big Fed rate decision
Stocks edged slightly lower on Tuesday as investors took some profits ahead of a highly-awaited Federal Reserve interest rate decision. The S&P 500 traded 0.13% lower to close at 6606.76, after hitting a fresh record earlier in the session. The Nasdaq Composite lost 0.07% to finish the session at 22,333.96. The Dow Jones Industrial Average dropped 125.55 points, or 0.27%, to close at 45,757.90. Key bull market leaders declined, with shares of Nvidia and Microsoft losing 1.6% and 1.2%, respectively. Palantir and Google parent Alphabet also pulled back. The two-day Fed meeting, which kicked off on Tuesday, is expected to result in a rate cut for the first time since December. Interest rate futures are pricing in a 100% certainty of at least a quarter-point rate cut, according to the CME’s FedWatch tool.
3. Gold’s record rally takes breather as spotlight shifts to Fed
Spot gold was down 0.2% at $3,681.23 per ounce, as of 0256 GMT, after hitting a record high of $3,702.95 on Tuesday. The dollar edged up 0.1% after dropping to a more than two-month low on Tuesday. Meanwhile, the benchmark U.S. 10-year Treasury yields were hovering near a more than five-month low. Data on Tuesday showed U.S. retail sales increased more than expected in August, but a weakening labour market and rising prices because of tariffs pose a downside risk to continued strength in spending. The U.S. central bank is expected to deliver a quarter-percentage-point rate cut later in the day to support the labour market. Remarks from Fed Chair Jerome Powell will be closely watched to gauge the pace of further easing.
4. Oil prices hold steady as markets await Fed rate decision
Oil prices held steady in early trading Wednesday, after rising more than 1% in the previous session on drone attacks on Russian ports and refineries, while traders awaited an expected rate cut from the U.S. Federal Reserve. Brent crude futures dropped 1 cent to $68.46 a barrel by 0114 GMT, while U.S. West Texas Intermediate crude futures also fell 1 cent to $64.51 a barrel. Reuters reported Tuesday that three industry sources said Russia’s oil pipeline monopoly Transneft has warned producers they may have to cut output following Ukraine’s drone attacks on critical export ports and refineries. Oil prices settled more than 1% higher in the last trading session due to concerns Russian supply may be disrupted.
5. ‘Gaza is burning’: Israel launches ground invasion of strip’s largest city
Nearly two years into its retaliatory military offensive in the Gaza Strip, Israel said it has launched a long-studied ground assault on Gaza City. “IDF troops have begun expanding ground operations in Gaza City as part of Operation Gideon’s Chariots II,” the Israeli Defence Forces said Tuesday on social media. “Gaza is burning,” Israeli defence Minister Israel Katz had said earlier in the day, in a separate Google-translated update. “We will not relent or turn back — until the mission is complete,” he added. The ground invasion marks a deepening of Israel’s offensive in the Gaza Strip, which once housed 2.2 million people and has devolved into a starvation-stricken battlefield. Gaza City, previously the enclave’s most populous urban settlement, is still home to hundreds of thousands of displaced Palestinian people.
6. Japan exports contract less than expected in August as shipments to Asia rebound
Japan’s exports contracted less than expected in August as shipments to its largest trading region — Asia — rebounded, though the overall growth stayed negative for a fourth straight month. Japanese shipments fell 0.1% year on year, compared to a 2.6% fall in July. This was much softer than the 1.9% contraction expected by economists. The country’s imports declined at a softer pace of 5.2%, compared to the 7.4% contraction in July, but more than the 4.2% fall expected in the poll. Exports from the world’s fourth-largest economy have fallen into negative territory as the country grapples with U.S. tariffs and a slowdown from the front-loading of exports at the start of the year.
7. UK inflation holds at 3.8% in August, in line with expectations
The U.K.’s annual inflation rate was steady at 3.8% in August, according to data released by the Office for National Statistics (ONS) on Wednesday. Economists had expected inflation to reach 3.8% in the twelve months to August. August core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.6%, down from 3.8% in the twelve months to July. The data comes after the consumer price index hit a hotter-than-expected 3.8% in July, exceeding forecasts. The Bank of England is closely watching inflation data after forecasting the consumer price index could peak at 4% in September, before retreating in the early half of 2026. The central bank cut interest rates in August, taking the key rate from 4.25% to 4%, and saying it would take a “gradual and careful” approach to monetary easing, mindful of inflationary pressures but aware of the need to promote growth and investment.
8. U.S. retail sales rise by faster-than-expected 0.6% month-on-month in August
U.S. retail sales rose at a faster-than-anticipated pace in August, spurred on partially by demand at e-commerce retailers, although the prospect of a weakening labour market remains heading into the final weeks of the third quarter. Month-on-month, retail sales in the world’s largest economy rose by 0.6%, matching July’s upwardly-revised growth and topping economists’ expectations for an uptick of 0.2%, according to data from the Commerce Department on Tuesday. Notably, retail sales consist mostly of goods and are not adjusted for inflation. The figures come just a day before the Federal Reserve is due to unveil its latest interest rate decision.
9. China’s Baidu soars 16% to hit 2-year highs as company secures AI partnership, launches debt sale
Chinese tech giant Baidu saw its shares in Hong Kong soar nearly 16% on Wednesday as the company ramps up its artificial intelligence plans and partnerships. Shares in the Beijing-based firm, which holds a dominant position in China’s search engine market, had gained nearly 8% overnight in U.S. trading. The strong stock performance comes after Baidu earlier this week secured an AI-related deal with China Merchants Group, a major state-owned enterprise, focused on transportation, finance, and property development. Baidu has been aggressively pursuing its AI business, which includes its popular large language model and AI chatbot Ernie Bot. As it seeks to gain an edge in China’s competitive AI space, the company on Tuesday disclosed a 4.4 billion yuan ($56.2 million) offshore bond offering. This follows a $2 billion bond issuance back in March.
10. JD.com hits 4-mth high as chairman pledges no price war in hospitality push
JD.com shares surged to a four-month high on Wednesday after founder and chairman Liu Qiangdong said the company plans to roll out a hotel development model by the end of this year, but stressed that it has no ambition to spark a price war in the hospitality sector. At a company event late Tuesday, Liu said JD.com intends to support hotel operators through its supply-chain infrastructure to reduce operating costs, offering high-quality back-end services rather than entering into cut-price competition, according to media reports. Hong Kong-listed shares of the company surged as much as 6.5% to HK$138.4 by 05:38 GMT, reaching their highest level since mid-May. “We don’t want to drag the hospitality industry into a price war,” he said, adding that if JD earns 1 yuan in profit, it would take about 70 percent while leaving the rest to its partners.
11. Alibaba shares surge 4.8% to near 4-yr high on homegrown AI chip cheer, Ma speculation
Alibaba Group shares rose sharply in Hong Kong trade on Wednesday, buoyed by reports of more progress in China’s homegrown AI chip ambitions, while speculation over founder Jack Ma’s return also helped. Alibaba shares rose 4.8% to HK$160.10 to their highest level since November 2021. They helped underpin a 1.5% spike in the Hang Seng index. Chinese media reported on Wednesday that a major upcoming data centre from China Unicom– the Sanjiangyuan data centre– had signed contracts to deploy AI chips from several Chinese firms, including Alibaba’s chip unit T-Head, Biren Technology, and Zhonghao Xinying. Ma’s return is being touted as a sign that Beijing is loosening its grip on its internet giants, after a debilitating antitrust crackdown in the early 2020s.
12. Lilly weight-loss pill could be FDA-approved by year-end
Eli Lilly’s experimental weight-loss pill could be fast-tracked under a one- to two-month review process recently launched by the U.S. Food and Drug Administration, several Wall Street analysts said. Analysts speculate that the drug, orforglipron, is a viable candidate given the growing cost burden of expensive injectable weight-loss drugs and the fact that Lilly is expanding its U.S. manufacturing – issues the Trump Administration has prioritized. Lilly, based in Indianapolis, said the new FDA program is “a promising initiative,” but it was “too early to discuss how this submission pathway might relate to any of our specific programs.” Goldman Sachs recently estimated that if orforglipron were to launch one quarter earlier than expected, it would bring in another $1 billion in revenue to Lilly.
13. Oracle, Silver Lake consortium to control 80% stake in TikTok in US, reportedly
TikTok’s U.S. operations would be controlled by an investor consortium including Oracle, Silver Lake and Andreessen Horowitz, under a framework the U.S. and China are finalizing, sources reported on Tuesday, citing people familiar with the matter. A new company will be created to operate TikTok, with U.S. investors holding a roughly 80% stake and Chinese shareholders owning the rest, the report said. The company would also have an American-dominated board, with one member designated by the U.S. government. Current users of the app will be asked to shift to a new app, which TikTok has built and is testing, the Post reported. The media had reported in July that TikTok was preparing to launch a standalone app for U.S. users, which was expected to operate on a separate algorithm and data system from its global app.
14. Rivian stock rises 6% after breaking ground on Georgia manufacturing site
Rivian stock rose 6% Tuesday after the electric vehicle maker formally broke ground on its new manufacturing facility in Georgia, marking a significant step in the company’s expansion plans. The multi-billion-dollar investment is expected to create 7,500 jobs by 2030, with construction set to begin in 2026. The new facility, located outside Social Circle, Georgia, will produce Rivian’s next generation of vehicles, including the midsize R2 SUV and R3 crossover, with customer vehicle production anticipated to start in 2028. Rivian plans to build the facility in two phases, with each phase adding 200,000 units of annual production capacity. Once completed, the plant will have a total annual capacity of 400,000 vehicles, supporting the sale of American EVs in international markets. “We are cementing Rivian’s future at our Georgia plant, helping ensure America maintains its technology leadership and excellence in automobile manufacturing,” said Rivian Founder and CEO RJ Scaringe during the ceremony.