Indices are set to post weekly losses as the dollar continues to attract
Indices are set to report a week of losses as the US dollar winning streak continues, the longest for 15 months. The greenback benefits from the economic situation in the US, which points to high rates for longer.
US indices
Indices are set to report a week of losses as the USD winning streak continues, the longest for 15 months. The greenback benefits from the economic situation in the US, which points to high rates for longer, economic difficulties also act as support for the dollar as the market looks for safety.
Evergrande group
In China, the world's most heavily indebted property developer, Evergrande has filed for bankruptcy protection in a Manhattan court. Evergrande, once China's top property developer, was found in 2021 to be struggling with more than $300 billion in liabilities as government officials tightened scrutiny on the real estate sector. Its liquidity crisis soon made it a symbol of the country's property sector woes.
Japanese economy
There's been a bit of relief for the Japanese yen; it's up for a second day after Japan's inflation rate remained at 3.3%. Economists had been expecting consumer price index (CPI) to drop to 2.5%. Last month, when inflation rose to 3.3% in June, it was the first time in eight years it outpaced the US figure, underscoring how Asia's most advanced economy is no longer an outlier in global inflation.
Core inflation came in line with expectations at 3.1%. Ex-food and energy, the so-called "core-core' inflation, the indicator favoured by the Bank of Japan (BOJ), climbed back up to 4.3%, a four-decade high it first reached in May.
UK retail sale
In the UK, retail sales fell more than expected in July. -1.2% month-over-month (MoM). Economists expected a 0.5% drop. On an annual basis, retail sales fell 3.2%.
Digital assets
Coinbase was one of the big losers on Wall Street in all sessions. It comes as the slide in Bitcoin continues. The FT reports that the sell-off coincided with a report in The Wall Street Journal stating that Elon Musk's privately held Spacex venture had written down the value of its bitcoin holdings by $373 million in the past two years and had sold the cryptocurrency.
Digital asset traders have kept close tabs on Musk since 2021's exposure to cryptocurrencies, when his electric-car company Tesla briefly accepted payments in Bitcoin.
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