By the end of Tuesday, the Dow Jones (US30) Index grew by 1.04%. The S&P 500 (US500) gained 0.32%. The technology-heavy Nasdaq (US100) closed up by 0.04%. On Wednesday, the US stock indices closed higher, extending recent momentum, as growing expectations of a Federal Reserve rate cut in September continued to lift sentiment. The rally continued the gains from Tuesday, which were triggered by softer-than-expected inflation data that fueled bets on monetary easing, with traders fully pricing in a September rate cut and some even expecting a 50 basis point reduction. Among the gainers were AMD, which rose by 5.4%, while some mega-cap tech stocks like Nvidia, Alphabet, and Microsoft saw declines.

On Thursday, Bitcoin climbed above $123,000, setting a new record, fueled by growing institutional demand and expectations of monetary easing. An executive order issued last week opened the possibility of including digital assets in 401(k) retirement plans, signaling a more favorable regulatory stance in the US. Further boosting Bitcoin’s rise were steady inflows into spot exchange-traded funds and purchases by public companies following the example of MicroStrategy, which has transformed from a software company into a major player in the Bitcoin market. Since the beginning of the year, Bitcoin has appreciated by approximately 28%.

European stock markets grew steadily yesterday. Germany’s DAX (DE40) was up by 0.67%, France’s CAC 40 (FR40) closed up by 0.66%, Spain’s IBEX35 (ES35) gained 1.08%, and the UK’s FTSE 100 (UK100) closed up 0.19%. European stocks surged on Wednesday, reaching a two-week high, as prospects of US interest rate cuts and the possibility of lower energy prices supported a backdrop of stronger growth in the bloc. Banks, the luxury sector, and the technology sector were among the session’s leaders. Healthcare stocks also closed sharply higher after a change in their performance from the first half of the month: Sanofi and Bayer added 2% and 3.5%, respectively, while AstraZeneca jumped 3% outside the Eurozone Index. Conversely, oil producers declined, primarily due to a 1% drop in TotalEnergies shares following a signal from the IEA about a global surplus.

WTI crude oil prices fell to $62.6 per barrel, their lowest level in more than two months, after the International Energy Agency (IEA) expected a growing oil surplus this year and next. Inventories are expected to grow at a record pace and reach a 46-month high by June 2026, confirming similar expectations from the US government. The US oil production is projected to peak this year and then decline next year, driven by improved efficiency in existing wells. Meanwhile, EIA data showed that inventories grew slightly last week, which aligned with an industry report on Tuesday.

Asian markets were mostly higher yesterday. Japan’s Nikkei 225 (JP225) grew by 2.15%, China’s FTSE China A50 (CHA50) rose by 0.88%, Hong Kong’s Hang Seng (HK50) gained 0.25%, and Australia’s ASX 200 (AU200) posted a positive result of 0.41%.

In July 2025, employment in Australia grew by 24,500 to a record high of 14.64 million people, a sharp increase after a downwardly revised gain of 1,000 in the previous month, but slightly missing the market consensus of a 25,000 increase. Full-time employment rose to a record level of 10.13 million people. The employment-to-population ratio grew to 64.2%, while the participation rate remained at 67.0%. The strong labor market reduced the likelihood of further rate cuts from the RBA.