The White House economic adviser Kudlow said that the Chinese and US representatives had a fruitful call on Wednesday and there will be a call in the next few days. A number of regional Fed governors opposed the interest rate cut. It is believed that there will be more policy guidance after the Powell’s speech at the annual meeting of Jackson Hole Central Bank on Friday.
- The Dow Jones Industrial Average closed at 26,252.24 points, up 49.51 points or 0.19%. The Standard & Poor’s 500 Index closed at 2,922.95 points, down 1.48 points or 0.05%. The Nasdaq index closed at 7,991.39 points, down 28.82 points or 0.36%.
- White House economic adviser Kudlow said that the Sino-US conference call on Wednesday on trade issues was fruitful and there will be a call in the next few days.
- The presidents of the Philadelphia and the Boston Fed opposed the idea that the US economy needs lower interest rates, predicting that the Fed’s September policy meeting will have a heated debate on whether to cut interest rates again.
- The UK’s FTSE 100 index closed at 7,128.18 points, down 75.79 points or 1.05%. The Frankfurt DAX index closed at 11,747.04 points, down 55.81 points or 0.47%. The French CAC40 index closed at 5,388.25 points, down 47.23 points or 0.87%.
- The minutes of the ECB’s July policy meeting showed that most of the policymakers are worried that the inflation will slow down for a long time, prompting the central bank to prepare for a new round of potential stimulus measures.
- German Chancellor Merkel hinted that it is possible to have a solution to break the UK’s Brexit deadlock within the next month. French President Mark Long agreed, but he warned that it could not deviate too far from the basis of the existing agreement.
- Japan’s Nikkei 225 index closed at 20,628.01 points, up 9.44 points or 0.05%. The yen closed at 106.450 against 1 US dollar, up 0.000%.
- Spokesman for the Japanese Ministry of Foreign Affairs claimed that during a meeting with the South Korean foreign minister, the Japanese Foreign Minister said that the issue of South Korea’s World War II labor compensation was the biggest bilateral issue and strongly urged South Korea to change the current situation.
- The Shanghai Composite Index closed at 2,883.44 points, up 3.11 points or 0.11%. The Shanghai and Shenzhen 300 Index closed at 3,793.51 points, up 11.75 points or 0.31%. The RMB closed at 7.088 against 1 US dollar, down 0.327%.
- China’s Ministry of Commerce claimed that if the US imposes new tariffs on Chinese exports, it will lead to an escalation of trade war. Besides, it also reiterates that China will impose countermeasures and release a list of unreliable entities soon.
- According to S&P’s estimation, China local government’s hidden debt rose to about 20 trillion yuan, equivalent to 25% of Chinese GDP.