Morning wrap: Bitcoin surges to $75k, Wall Street tries to stabilize

Yesterday’s session on Wall Street ended distinctly weaker. Bond yields quickly bounced back after an earlier dip, as investors concluded that the Treasury Department’s actions might offer only short-term support for the debt market. The S&P 500 lost about 0.9%, with sentiment further dampened by a sharp decline in Walmart shares following a weaker quarterly report.

📊 Indices and Companies

• Wall Street index futures paused after yesterday’s sell-off, entering the European session slightly in the green. The marginal gains reflect persistent pressure in the debt market—US Treasury yields erased most of the losses caused by the announcement of accelerated buybacks by the Treasury Department.

• The Russell 2000 is rebounding the most (US2000: +0.35%) alongside Nasdaq (US100: +0.15%), while the DJIA (US30) and S&P 500 (US500) remain flat.

• Asian markets are closing Friday’s session slightly higher. South Korea’s KOSPI is leading the bounce (+0.8%). China is also trading in the green (CHN.cash: +0.6%, HK.cash: +0.5%), while the cash Nikkei 225 is losing around 0.25% amid rising CPI inflation.

• SK Hynix and Samsung Electronics (both +3%) fueled gains in Korea in response to massive shareholder-return plans. In Hong Kong, Alibaba fell 3% following a >75% drop in quarterly profit driven by a surge in AI capex ($10B), while developer Henderson Land jumped over 7% on solid H1 results.

• European index futures are recording modest gains ahead of the cash market open. Focus will shift to preliminary service and manufacturing PMI data from major European economies (UK, France, Germany, Eurozone), followed by the US. Preliminary European consumer sentiment data will be published at 4:00 PM CEST.

• Nvidia denied reports that it is developing a specialized LPU product exclusively for the Chinese market. The company emphasized that such a chip is not currently on its product roadmap and that earlier reports were incorrect.

• Broadcom is reportedly in talks to finance its latest AI project valued at over $60 billion, with the structure potentially including around $30 billion in junior debt and a secured senior tranche. Blackstone and Apollo may potentially participate in the financing, highlighting the scale of capital needed to further build out AI infrastructure.

🌍 Economy and Geopolitics

• Japanese core CPI inflation accelerated in July to 1.8% YoY (headline to 1.9%), reinforcing the case for BOJ monetary policy tightening. The OIS market currently prices in an approximately 80% probability of a rate hike at the central bank’s upcoming September meeting.

• Japan’s Flash Composite PMI rose to 53.4 in August (up from 52.7 in July), reaching a 6-month high. Growth was driven by manufacturing (PMI 55.1) thanks to the strongest export orders since 2018 (AI and semiconductor sector). Services also accelerated (PMI 52.3). Cost pressures eased to a 5-month low, while business optimism reached its highest level since February.

💱 Currencies and Commodities

• The Dollar Index is returning to declines (USDIDX: -0.1%), signaling further capital outflows from the US following recent shifts in the debt market. Antipodean currencies are the strongest today, supported by local PMI data (AUDUSD, NZDUSD: +0.4%). USDJPY is trading flat just below 159.00. EURUSD is approaching 1.1700 again (+0.15%).

• Gold (GOLD +0.3% today, +2.7% for the week) — The metal reached its highest levels since June (price: $4,536) and is heading for its third consecutive week of gains. Profits are driven by dollar weakness and investor positioning for the “debasement trade” amid concerns over US public finances.

• Silver (SILVER +1% today, +4.8% for the week) — Continues strong, three-day gains, approaching $69 per ounce amid elevated market volatility, driven by fundamentals similar to gold.

• Brent crude (OIL -1.6% today) — Recording daily losses despite reports of slowing tanker traffic in the strategically critical Strait of Hormuz.

• Support for battery metals: The US Department of Energy (DOE) announced $500 million in grant awards for domestic lithium and cobalt processing, as well as battery manufacturing projects.

• Natural gas (NATGAS, NATGAS.EU) – Futures are trading flat, cooling off after yesterday’s gains, particularly in European contracts.

🪙 Cryptocurrencies

• BITCOIN (BITCOIN +3.43% today, +16.94% for the week) — Bitcoin rebounds sharply to $75,120. Cryptocurrencies are gaining as investors flee fiscal risks tied to US debt.

• CURVE DAO (CURVEDAO +14.03% today, +30.28% for the week) — Leading daily gains among altcoins, staging a strong recovery after a long-term decline.

• Dynamic altcoin rally: The broader crypto sector is registering strong, double-digit weekly gains, led by ETHEREUM (+1.58% today, +23.68% for the week) and RIPPLE (+4.27% today, +31.03% for the week).

Bitcoin chart (D1 interval)

Source: xStation5