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TRADING DAY
Price pressures keep coolin'    | Reuters

July 15 (Reuters) - U.S. bond yields fell on Wednesday after another snapshot of U.S. inflation in June came in softer than expected, easing pressure on the Federal Reserve to raise interest rates, while strong profits and potential M&A activity also supported stocks.

In my column today, I look ​at why Fed Chair Kevin Warsh can't afford to get complacent on inflation, despite the downside surprises in June's CPI ‌data...

Today's Talking Points
* China crisis?

The latest ​official economic data from China shows why Beijing is putting such reliance on exports. Domestic investment and lending in June fell well short of expectations, suggesting the country's deleveraging is far from over. Q2 GDP was a big miss — growth slowed to 4.3% from 5.0%, the slowest pace in more than three years.

Were it not ​for strong exports, especially chips and autos, the broader growth outlook would be even bleaker. Should Beijing be doing more to fire up domestic ​demand, like slashing interest rates or launching large-scale fiscal stimulus? If the economic malaise continues, it may have to.

* U.S. banks in fine fettle
Most of the big ‌U.S. ⁠banks have reported Q2 earnings, and it's safe to say Wall Street is in rude health. Combined net income from five banks — JPMorganGoldmanCitiBofA and Morgan Stanley — topped $50 billion in the April-June period, driven by strong trading, IPO underwriting and dealmaking.

The big asset managers are in good shape too, with BlackRock's AUM surging to a record $15 trillion. Little wonder U.S. financials are ripping higher, now up 20% from the March low to a fresh record high on ​Wednesday.

* TICking the box
Foreigners can't stay away from U.S. stocks and bonds. ⁠The latest U.S. Treasury International Capital (TIC) flows data show net foreign purchases of U.S. assets in May totaled $232.7 billion, more than double April's figure and the third-highest month on record.

About half of that flowed into ​equities, and once again, private sector investors accounted for almost all overseas demand for U.S. assets. Tech ​sector tremors wobbled Wall ⁠Street in June, so it will be interesting to see if that affected foreign demand. On the whole, though, nobody wants to be missing out on the U.S. AI-driven rally.


What could move markets tomorrow?

TSMC earnings (Q2)
South Korea
 interest rate decision
U.S. Philly Fed business index (July)
U.S. Federal Reserve officials scheduled to speak include Dallas ⁠Fed President ​Lorie Logan, Kansas City Fed President Jeffrey Schmid, and Vice Chair Philip Jefferson
U.S. earnings

https://www.reuters.com/commentary/reuters-open-interest/global-markets-trading-day-graphic-2026-07-15/
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#HKMarketUpdate
<Full-day Takeaway>HSI Up 327 pts; HSTI Up 93 pts; XIAOMI Up over 6%; MEITUAN Up over 4%; BABA Up over 3%; HSBC HOLDINGS, ABLE DIGITAL Hit New Highs; Market Turnover Rises
2026/07/16 16:12 GMT+08

At close, HSI rose 327 pts or 1.3% to 25,008. HSTI rose 93 pts or 2.0% to 4,834. HSCEI gained 133 pts or 1.6% to 8,318. Market turnover reached $322.89 billion.

https://www.aastocks.com/en/stocks/news/aafn-con/NOW.1533664/top-news/AAFN
#HKMarketUpdate
<H Shrs>HSI Finishes Up 327 pts, Reclaims 25,000 Mark; XIAOMI-W Rebounds 6%+; XL2CSOPSMSN, XL2CSOPHYNIX Slide ~20%
2026/07/16 16:44 GMT+08

The HSI closed at 25,008, up 327 pts or 1.33%, with market turnover reaching HKD322.892 billion. The HSTECH closed at 4,834, up 93 pts or 1.98%. The HSCEI closed at 8,318, up 133 pts or 1.63%.

https://www.aastocks.com/en/stocks/news/aafn-con/NOW.1533678/top-news/AAFN