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Aug 12, 2025
Global rise with trade truce
Waiting for US inflation
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On August 12, 2025, global markets witnessed positive dynamics driven by two major developments: The extension of the US-China trade truce for 90 days, through a decision by President Trump to temporarily remove the specter of massive tariffs, removed uncertainty and contributed to strengthening global risk appetite. US consumer prices fell slightly short of expectations, with inflation reading at 2.7% and core inflation declining to 3.1%. This raised the prospect of a September interest rate cut, further supporting market sentiment. |
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The impact of these developments on the markets:
Asian markets: rose sharply, especially Japan's Nikkei 225 index, which reached record highs, driven by trade optimism and strong earnings.
European markets: witnessed a slight rise after welcoming the trade extension with a balanced welcome and awaiting US inflation data.
US markets: Major indices rose to record highs, with the S&P 500 and Dow Jones posting gains of around 1.1%, and the Nasdaq jumping around 1.4%.
Conclusion:
The extension of the trade truce between the world's two largest economies has calmed markets and raised optimism. However, US inflation data remains the next focus for future interest rate policy decisions.