- Oil prices dip to settle at 3-week low on US and China economic concerns
Oil prices eased on Friday and settled at a three-week low as traders worried about negative economic news
from the U.S. and China and signs of growing supply. Losses were limited by optimism U.S. trade deals could
boost global economic growth and oil demand in the future. Brent crude futures fell 74 cents, or 1.1%, to settle
at $68.44, while U.S. West Texas Intermediate (WTI) crude fell 87 cents, or 1.3%, to settle at $65.16. Those
were the lowest settlement levels for Brent since July 4 and WTI since June 30. For the week, Brent was down
about 1% with WTI down about 3%. European Commission President Ursula von der Leyen will meet U.S.
President Donald Trump on Sunday in Scotland. European Union officials and diplomats said they expected to
reach a framework trade deal this weekend. - S&P 500 posts fifth straight record close this week, powered by solid earnings
The S&P 500 rose on Friday as it closed out a winning week following solid earnings results and the latest trade
developments. The broad market index jumped 0.40% and posted its 14th record close of the year at 6,388.64.
The Nasdaq Composite rose 0.24%, ending at 21,108.32 for its 15th record close in 2025. Both indexes also hit
new all-time intraday highs during the session. The Dow Jones Industrial Average also climbed 208.01 points,
or 0.47%, to settle at 44,901.92. The 30-stock index ended the session about 0.25% off its Dec. 4 record close
of 45,014.04. All three major averages finished the week with gains. The 30-stock Dow posted a roughly 1.3%
advance in the period, while the tech-heavy Nasdaq rose 1% and the broad market S&P 500 gained about 1.5%.
Friday marked a fifth consecutive day of closing records for the S&P 500, with the index finishing above
6,300 for the first time on Monday. - Gold drops as dollar firms, trade deal hopes sap safe-haven demand
Gold prices slipped on Friday, weighed down by a stronger U.S. dollar and signs of progress in U.S.-EU
trade negotiations that dented safe-haven demand. Spot gold fell 0.9% to $3,336.01 per ounce. U.S. gold
futures settled 1.1% lower at $3,335.6. The U.S. dollar index rebounded from a more-than-two-week low,
making bullion more expensive for overseas buyers, while benchmark 10-year U.S. Treasury yields rose.
Following this week’s U.S.-Japan trade deal, the European Commission said a trade deal with the U.S. is within
reach, even as EU members approved counter-tariffs on U.S. goods in case talks fail. On the data front, U.S.
jobless claims fell to a three-month low, signalling a stable labour market despite sluggish hiring. - 10-year Treasury yield falls as investors assess U.S. economy, trade developments
The 10-year Treasury yield moved lower on Friday as investors weighed the slate of trade developments and
economic data over the past week. The yield on the benchmark 10-year Treasury was more than 2 basis points
lower at 4.384%. The 2-year yield was less than 1 basis point lower at 3.919%, while the 30-year yield fell more
than 2 basis points to 4.922%. - Trump announces EU trade deal with 15% tariffs
President Donald Trump announced Sunday that the U.S. reached a trade deal with the European Union,
following pivotal discussions with European Commission President Ursula von der Leyen days before the Aug.
1 tariff deadline. Trump said that the deal imposes a 15% tariff on most European goods to the U.S., including
cars. Some products, including aircrafts and their components, some chemicals and pharmaceuticals, will not
be subject to tariffs, von der Leyen said in a briefing after the agreement was announced. She also said that
the new 15% tariff rate would not be added to any tariffs already in effect. The 15% tariff rate is lower than
the 30% rate Trump had previously threatened against the United States’ largest trading partner, but higher
than the 10% baseline tariffs the EU was hoping for. Trump said that the 27-member bloc also agreed to
purchase $750 billion worth of U.S. energy and invest an additional $600 billion worth of investments into the
U.S. above current levels. - China proposes global body to govern artificial intelligence
China has unveiled a sweeping plan to expand its role in artificial intelligence governance including the creation
of a global co-operation organisation as Beijing vies with Washington for technological leadership. Speaking at
the opening of the World Artificial Intelligence Conference (WAIC) in Shanghai on Saturday, Chinese premier Li
Qiang said AI innovation was hindered by “bottlenecks” such as the supply of computer chips. Without explicitly
mentioning the US, he took aim at “technological monopolies” and restrictions which could lead to AI becoming
“an exclusive game for a few countries and companies”. “Currently, overall global AI governance is still
fragmented. - Singapore’s GIC signals caution on private credit
Singapore’s GIC sovereign wealth fund has signalled growing caution about investing in the fast-growing private
credit asset class, citing shrinking yields and the market’s lack of experience of a sustained downturn. “We are
now at a part of the cycle where we feel that spreads are a lot tighter [and] valuations are also higher,” said
Bryan Yeo, GIC’s chief investment officer ahead of the release of the fund’s annual results on Friday. “Hence
we are raising the bar in terms of further deployment into the private credit space.” Yeo highlighted the
market’s lack of experience of a major downturn as a source of potential concern. His comments are the latest
in a series of warnings about the risk of investors rushing into the rapidly burgeoning private credit sector in
search of higher yields amid a cooling of the private equity market and increased equity volatility. - Israel announces ‘tactical pause’ in Gaza fighting after outrage over starving Palestinians
Israel announced Sunday it was pausing fighting in some areas of the Gaza Strip to facilitate aid delivery
after international outrage swelled in recent days over surging deaths by malnutrition and widespread
starvation caused by Israeli restrictions on humanitarian aid. The announcement issued by the Israel Defence
Forces said it would be implementing “humanitarian corridors” for the safe movement of United Nations aid
trucks and “humanitarian pauses” in some of Gaza’s most densely populated areas. Trucks began moving into
Gaza from Egypt after Israel’s announcement, with the Egyptian Red Crescent saying the convoy included over
100 aid trucks containing more than 1,200 tons of food. - U.S. and China to resume tariff talks on Monday in effort to extend truce
Senior U.S. and Chinese negotiators meet in Stockholm on Monday to tackle longstanding economic disputes
at the centre of the countries’ trade war, aiming to extend a truce keeping sharply higher tariffs at bay. China
is facing an Aug. 12 deadline to reach a durable tariff agreement with President Donald Trump’s administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100%. So far, the talks have not delved into broader economic issues. They include U.S. complaints that China’s state-led, export-driven model is flooding world markets with cheap goods, and Beijing’s complaints that U.S. national security export controls on tech goods seek to stunt Chinese growth. - CrowdStrike outlook raised to positive by Moody’s
Moody’s Ratings has affirmed CrowdStrike Holdings Baa3 senior unsecured rating and changed the outlook to
positive from stable, citing the company’s strong competitive position in the cybersecurity market. The rating
agency expects CrowdStrike’s subscription revenue growth to accelerate from about 20% in the first half of
fiscal year ending January 2026 to 23% in fiscal year 2027, with increasing profitability driving strong free cash
flow growth. While the business outages caused by CrowdStrike’s faulty content configuration update in July
2024 negatively impacted operating performance, Moody’s noted that the financial impact has been limited
and the company’s competitive position remains strong. The positive outlook also reflects expectations that
CrowdStrike’s conservative financial policies will continue to support strengthening credit metrics with growing
earnings. - Volkswagen CEO hopes for own tariff deal with ’attractive’ investments
Europe’s largest car manufacturer Volkswagen is hoping investment commitments can help it negotiate further
concessions on U.S. tariffs once Washington and the European Union strike a broad trade deal, CEO Oliver
Blume told investors on Friday. As they wait for the outcome of trade talks between the U.S. and the EU ahead
of an August 1 deadline, European carmakers are also looking at possible investments or production shifts that
might appease President Donald Trump and bring down tariffsThe executive also mentioned the possibility of
opening a plant for Volkswagen’s luxury brand Audi in the U.S., where the subsidiary currently has no
production presence. In February, Audi said it would look at expanding production. - Palantir joins list of 20 most valuable U.S. companies, with stock more than doubling in 2025
Palantir has hit another major milestone in its meteoric stock rise. It’s now one of the 20 most valuable U.S.
companies. The provider of software and data analytics technology to defence agencies saw its stock rise more
than 2% on Friday to another record, lifting the company’s market cap to $375 billion, which puts it ahead
of Home Depot and Procter & Gamble. The company’s market value was already higher than Bank of
America and Coca-Cola. Palantir has more than doubled in value this year as investors ramp up bets on the
company’s artificial intelligence business and closer ties to the U.S. government. Revenue in Palantir’s
U.S. government business increased 45% to $373 million in its most recent quarter, while total sales rose 39%
to $884 million. - Samsung Electronics signs $16.5 billion chip-supply contract in boost to foundry business
Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to a major
company, a regulatory filing by the South Korean company showed Monday. The memory chipmaker, which
did not name the counterparty, mentioned in its filing that the effective start date of the contract was July 26,
2024 — receipt of orders — and its end date was Dec. 31, 2033. Samsung declined to comment on details
regarding the counterparty. Local South Korean media outlets have said that American chip
firm Qualcomm could place an order for chips manufactured using Samsung’s 2 nanometer technology. - Boeing’s contract offer rejected by union members
Union members who assemble Boeing fighter jets in the St. Louis area have “overwhelmingly voted” to reject
the company’s contract offer on Sunday, with the company now preparing for an imminent strike. Boeing’s
proposal, which was sent on Tuesday to more than 3,200 members of the International Association of
Machinists and Aerospace Workers (IAM) District 837, included a 20% general wage increase over four years
and a $5,000 ratification bonus, as well as more vacation time and sick leave. The current contract expires on
Sunday following which there is a seven-day cooling off period before a strike would begin, the union added.
Boeing’s defence division is expanding manufacturing facilities in the St. Louis area for the new U.S. Air Force
fighter, the F-47, after it won the contract earlier this year.
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