Bonds & Stocks
Wall Street traders are preparing for Powell's speech, which may impact the Treasury market and interest rates. Ian Lyngen at BMO Capital Markets said the biggest risk for Treasuries is if Powell throws cold water on the anticipated September rate cut. Meanwhile, S&P Global Ratings said revenues from tariffs will help soften the blow to the US’s fiscal health from tax cuts.
Economy
New residential construction increased 5.2% last month to an annualized rate of 1.43 million homes, according to government figures. Multifamily starts increased nearly 10% to the strongest pace since mid2023, while starts of single-family homes rose 2.8% in July.
World
President Trump’s tariff war is accelerating Beijing’s trade and investment push into developing nations known as the Global South, according to research by S&P Global, potentially creating a new trade order dominated by Chinese firms. China’s goods exports over the past decade have doubled to nations mostly across Southeast Asia, Latin America and the Middle East, compared with growth of 28% to the US and 58% to Western Europe. That trend has accelerated in the five years since Trump’s first term.