1. Asia markets track Wall Street declines; Japan exports notch steepest drop in over four years
Asia-Pacific markets closed mostly lower Wednesday, tracking Wall Street declines overnight, as investors parsed Japan’s trade data and China’s loan prime rate decision. Japan’s exports dropped 2.6% year over year in July, notching their steepest drop in over four years. The fall was sharper than the 2.1% contraction forecast and compared with a 0.5% decline in June. Japan’s Nikkei 225 declined 1.51% to close at 42,888.55, while the Topix lost 0.57% to 3,098.91. Shares of SoftBank Group plunged as much as 9.17% Wednesday, as technology stocks in Asia declined, tracking losses in U.S. peers overnight.
2. S&P 500 falls for a fourth day, Nasdaq posts back-to-back losses as tech names slide
The S&P 500 and Nasdaq Composite dipped on Wednesday, pressured by a broad decline in tech. Investors also weighed mixed retail earnings results and the Federal Reserve’s latest meeting minutes release. The broad market index slipped 0.24% to close at 6,395.78, while the tech-heavy Nasdaq lost 0.67% and settled at 21,172.86. The Dow Jones Industrial Average added 16.04 points, or 0.04%, and settled at 44,938.31. Investors continued to take profits from several heavyweight technology and semiconductor names, fanning concerns about their high valuations and the strength of the artificial intelligence trade longer term.
3. Gold firms as dollar weakens, focus on Fed minutes and Jackson Hole
Gold rose nearly 1% on Wednesday as the U.S. dollar eased, while market participants braced for the minutes of the U.S. central bank’s last policy meeting and upcoming Jackson Hole symposium for clues on future interest rate moves. Spot gold was up 0.9% to $3,345.38 per ounce, by 1:11 p.m. EDT (1711 GMT) after hitting its lowest level since August 1 earlier. U.S. gold futures gained 0.8% to $3,388.7. The U.S. dollar eased, making dollar-priced-bullion more affordable for other currency holders. The Federal Reserve July meeting minutes, due at 2:00 p.m. EDT, will be released two days ahead of Fed Chair Jerome Powell’s speech at the annual Jackson Hole economic symposium on Friday.
4. Oil firms as investors await next steps in Ukraine peace push
Oil rose on Wednesday as the American Petroleum Institute reported a drop in U.S. crude inventories and investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Brent crude futures rose 66 cents, or 1%, to $66.45 a barrel by 8:19 a.m. ET. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, gained 78 cents, or 1.25%, to $63.13. Crude fell more than 1% on Tuesday on optimism that an agreement to end the war seemed closer. However, U.S. President Donald Trump conceded that Russian President Vladimir Putin might not want to make a deal. Trump said on Tuesday the United States might provide air support as part of a deal to end Russia’s war in Ukraine. A day earlier, Trump said he was arranging a meeting between Putin and Ukrainian President Volodymyr Zelenskiy to be followed by a trilateral summit among the three presidents. Russia has not confirmed it will take part in talks with Zelenskiy.
5. Dollar falls as Trump calls on Fed’s Cook to resign
The dollar fell on Wednesday after U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign, as investors also waited on a speech by Fed Chair Jerome Powell on Friday for clues on interest rate policy. Trump cited a call by the head of the U.S. Federal Housing Finance Agency urging the Department of Justice to probe Cook over alleged mortgage fraud. Spokespeople for Cook and the Fed did not immediately respond to requests for comment. Trump has been critical of Powell for being to slow to cut rates, and traders expect he will replace the Fed Chair with a more dovish appointment when his term ends in May.
6. Trump has snapped up more than $100 million in bonds since taking office
U.S. President Donald Trump has been on a multimillion-dollar bond-buying spree since taking office in January, investing in debt issued by local authorities, gas districts and major American corporations. Across 33 pages of filings with the U.S. Office of Government Ethics, or OGE, dated Aug. 12, the president outlined 690 transactions that have taken place since he took office. The documents were made public on Tuesday. The extensive lists filed earlier this month show that, over the course of this year, Trump has bought bonds sold by various entities, including local U.S. governments, as well as gas districts, water supply districts, hospital authorities and school boards.
7. Trump housing regulator Pulte says Fed’s Cook should resign or be fired, alleging mortgage fraud
The head of President Donald Trump’s housing regulatory agency said Wednesday that Federal Reserve Governor Lisa Cook should resign or be fired for cause over what he claims is evidence of “mortgage fraud” by the central bank official. The remarks came hours after Trump, reacting to a letter Pulte sent to the Department of Justice asking it to criminally investigate Cook, wrote in a social media post that the governor “must resign, now!!!” The letter to Attorney General Pam Bondi is the latest example of the Trump administration airing allegations of mortgage-related wrongdoing against the president’s opponents. The Justice Department is investigating Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James on similar grounds. It also shows Trump expanding his efforts to push the Fed to slash interest rates, a pressure campaign that so far has mostly focused on central bank chairman Jerome Powell.
8. Gloom grows in China as tariffs and property slump weigh on sentiment
In late July, the jobs outlook fell to a record low, according to a quarterly survey by China’s central bank. Consumer sentiment in the U.S. has also deteriorated, according to a preliminary read for August compiled by the University of Michigan. While American consumers are not bracing for the worst, as they were at the escalation in trade tensions in April, many still expect inflation and unemployment to worsen, the report said. Trade tensions persist, despite the U.S. and China last week extending a trade truce until mid-November. But that still leaves tariffs of around 55% on most Chinese exports to its largest trading partner. But as China’s domestic economy slogs through a transition away from real estate, its companies are turning overseas. Despite the headwinds, Beijing has kept its official growth target at around 5% for the year. China’s property and construction sector once accounted for more than a quarter of China’s GDP and is still the main driver of household wealth.
9. Israel enters first stage of planned assault on Gaza City
Israel on Wednesday entered the first stages of its planned assault on Gaza City after approving a plan to take over the city that includes calling up 60,000 reservists for its expanded military operation in the besieged Palestinian enclave. “We have begun the preliminary actions and the initial stages of the offensive on Gaza City, and already now IDF forces are holding positions on the outskirts of Gaza City,” Israeli military spokesman Effie Defrin told reporters on Wednesday. He added: “We will intensify the strikes on Hamas in Gaza City, the political and military stronghold of the terror organization.” Defrin also said that to “minimize harm to civilians,” the IDF will be warning citizens to allow them to evacuate. “We are continuing to allow humanitarian aid for the residents of the Strip and are even expanding it — with additional central aid distribution points,” he said.
10. UK inflation picks up to hotter-than-expected 3.8% in July
The U.K.’s annual inflation rate hit a hotter-than-expected 3.8%in July, according to data released by the Office for National Statistics (ONS) on Wednesday. July core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.8%, up from 3.7% in the twelve months to June. U.K. Chancellor Rachel Reeves responded Wednesday that there was more to do to ease the cost of living. The British pound was largely steady against the dollar following the data release, trading at $1.3489. Services inflation gained to 5% in July from 4.7% in the previous month. The print is seen as another obstacle in the Bank of England’s attempts to tame inflation, analysts say, as service-focused businesses raise prices to cover the costs of rising wages and the recent hike to National Insurance contributions. The higher July reading also diminishes the chance of any further interest rate cut by the Bank of England this year.
11. Trump says U.S. will not approve solar or wind power projects
President Donald Trump on Wednesday said his administration will not approve solar or wind power projects, even as electricity demand is outpacing the supply in some parts of the U.S. “We will not approve wind or farmer destroying Solar,” Trump, who has complained in the past that solar takes up too much land, posted on Truth Social. “The days of stupidity are over in the USA!!!” The president’s comment comes after the administration tightened federal permitting for renewables last month. The permitting process is now centralized in Interior Secretary Doug Burgum’s office. Renewable companies fear that projects will no longer receive permits that were once normal course of business. The president’s comments Wednesday will likely heighten those concerns.
12. Divided Fed worried about tariffs, inflation and the labour market, minutes show
Federal Reserve officials worried at their July meeting about the state of the labour market and inflation, though most agreed that it was too soon to lower interest rates, minutes released Wednesday showed. The meeting summary depicted a divergence of opinion among the central bankers, whose vote to hold their key rate steady came despite objections from two Fed governors who argued in favour of cutting. Policymakers noted rising threats to the economy that would warrant monitoring, though they largely agreed that their current stance was the appropriate way to go. “Participants generally pointed to risks to both sides of the Committee’s dual mandate, emphasizing upside risk to inflation and downside risk to employment”.
13. Estee Lauder forecasts profit below estimates, warns of $100 million tariff hit
Estee Lauder said on Wednesday it would cut inventory and promotions to help mitigate rising costs, after the luxury cosmetic maker warned that a $100 million hit from tariffs would weigh on its annual profit forecast. The company’s shares fell about 4% in afternoon trading after Estee Lauder also forecast annual profit below estimates. Higher costs related to the Trump administration’s unpredictable trade policies have dampened consumer spending, hurting businesses, especially higher-end brands like Estee Lauder and Tapestry as the luxury sector struggles with sagging demand. To reduce the impact of US-China tit-for-tat tariffs on its margins, the company said in May it would sell fewer cosmetics in China that were sourced from its U.S. factories.
14. Israel to place $500 million, US-funded order for Boeing aerial refuelling tankers
Israel plans to buy two Boeing-made KC-46 military aerial refuelling tankers in a $500 million deal to be financed with U.S. military aid, the Israeli defence ministry said on Wednesday. It said it would sign the contract with the U.S. government once an Israeli ministerial committee for defence procurement grants its approval. The U.S. government oversees foreign military sales and transfers to other nations. The military already operates four Boeing-made KC-46 aerial tankers, the defence ministry said in a statement. Ministry Director General Amir Baram said in the statement that the aircraft would strengthen the military’s long-range strategic capabilities, enabling it to operate farther afield with greater force and with increased scope.
15. China’s Baidu revenue drops as AI returns fail to offset ad decline
Chinese search engine company Baidu on Wednesday reported a drop in second quarter revenue as its core advertising business struggled amid China’s economic slowdown, while returns from AI investments remained limited. The company reported total revenue of 32.71 billion yuan ($4.56 billion) during the three months ended June 30, down 4% from the same period a year earlier. Analysts on average estimated quarterly revenue at 32.76 billion yuan. On an adjusted basis, Baidu made a profit of 13.58 yuan per American Depositary Share, beating expectations of 13.12 yuan. Baidu’s U.S.-listed shares were down 3% in early trading. Hit by a property market downturn, weak employment rates and choppy consumer demand, companies in China, the world’s second-largest economy, have reined in advertising spending to cut costs and protect their margins.
16. Snowflake rises as Bank of America lifts to Buy on positive Q2 setup, bullish long-term view
Bank of America Securities lifted its rating on Snowflake to Buy from Neutral and raised its price objective (PO) to $240 from $220, citing strengthening demand trends and long-term growth prospects in AI and data services. The new price target implies nearly 25% upside from the last closing price. BofA analysts pointed to multiple data sources signalling positive momentum ahead of Snowflake’s August 27 earnings. Channel checks also reflected an improving backdrop. Partners noted that customers are increasingly turning to Snowflake as a critical part of the AI technology stack, with Snowpark and Cortex AI showing strong adoption. Demand pipelines are said to be robust, with shorter sales cycles and open budgets for AI-related projects.
