September 11th Financial Breakfast: Middle East tensions + Fed rate cut expectations, gold prices remain stable near record highs, and the United States pushes for new sanctions on Russian oil buyers
2025-09-11 07:24:36
In early Asian trading on Thursday (September 11, Beijing time), spot gold was trading around $3,642 an ounce. Gold prices hovered near a record high on Wednesday, helped by expectations that the Federal Reserve will resume cutting interest rates at its meeting next week, after previously released U.S. inflation data fell short of expectations; U.S. crude oil was trading around $63.77 a barrel. Oil prices closed higher on Wednesday as investors worried about possible supply disruptions after Poland shot down a drone in its airspace and the United States pushed for new sanctions on Russian oil buyers, but a report on increased U.S. inventories curbed gains.
The S&P 500 and Nasdaq closed at record highs on Wednesday as Oracle surged and weaker-than-expected inflation data bolstered expectations of a Federal Reserve interest rate cut next week.
Oracle surged 36%, its biggest one-day percentage gain since 1992, after the tech company noted a surge in demand for its cloud services from artificial intelligence companies.
Its stock market capitalization reached $922 billion, surpassing Eli Lilly, JPMorgan Chase and Walmart and approaching Tesla's $1.12 trillion market capitalization.
Artificial intelligence-related chip stocks also rose, with Nvidia up 3.8%, Broadcom soaring 10%, and Advanced Micro Devices climbing 2.4%. The PHLX chip index rose 2.3%, hitting a record high.
Data center power suppliers also benefited, with Constellation Energy, Vistra, and GE Vernova all rising more than 6%. Apple, considered by many investors to be a laggard in artificial intelligence, fell 3.2%, extending its decline to a fourth consecutive day. Weaker-than-expected producer price data provided additional momentum as traders increased bets on interest rate cuts this year.
Recent labor market data confirms that the U.S. job market is slowing. CME Group's FedWatch tool shows that traders fully priced in the probability that the Federal Reserve will cut interest rates by at least 25 basis points at its policy meeting next week, with a 10% chance of a 50 basis point cut.
The S&P 500 has climbed about 11% so far in 2025, while the Nasdaq has risen about 13%.
"The fundamentals for the domestic stock market remain very strong, but we also have to acknowledge that valuations are stretched, which puts some natural pressure on the upward trajectory," said Bill Northey, senior investment director at U.S. Bank Wealth Management.
The S&P 500 rose 0.30% to close at 6,532.04, marking its second consecutive record high. The Nasdaq Composite rose 0.03% to 21,886.06, its third consecutive record high. The Dow Jones Industrial Average fell 0.48% to 45,490.92.
Six of the 11 S&P 500 sectors fell, led by consumer discretionary, which fell 1.58%, followed by consumer staples, which fell 1.06%.
Investors will now focus on consumer price data due on Thursday for clues on the direction of U.S. inflation.
"Combining the softer data (PPI) with the Fed's increased emphasis on the labor market and the downward revisions we're seeing in monthly payroll data, all of that supports expectations for a rate cut," said Jordan Rizzuto, CIO of GammaRoad Capital Partners.
A federal judge on Tuesday temporarily blocked President Trump from removing Federal Reserve Governor Tim Cook from his post, dealing a setback for the White House.
Barclays and Deutsche Bank raised their year-end targets for the S&P 500, citing strong corporate earnings, resilient U.S. economic growth and optimism about artificial intelligence.
Chip design software provider Synopsys plunged 36%, its biggest one-day drop ever, after its quarterly revenue fell short of Wall Street expectations. Rival Cadence Design Systems fell 6.4%.
Gold prices hovered near a record high on Wednesday, supported by expectations that the Federal Reserve will resume interest rate cuts at its meeting next week after weaker-than-expected U.S. inflation data.
Spot gold was trading at $3,647.94 an ounce, up 0.6% after hitting a record high of $3,673.95 on Tuesday. U.S. gold futures for December delivery were unchanged at $3,682.
Data from the U.S. Department of Labor showed that the U.S. Producer Price Index (PPI) unexpectedly fell month-on-month in August due to falling service prices.
"Any further weakness in U.S. data will continue to support gold, with expectations of two or more rate cuts before the end of the year," said Fawad Razaqzada, market analyst at City Index and FOREX.com. Gold has rallied more than 39% so far this year.
According to the CME Group's FedWatch tool, the market is pricing in a 90% chance of a 25 basis point rate cut at the Fed's September 16-17 meeting, with a small chance of a larger cut. Attention now turns to Thursday's Consumer Price Index (CPI), which will be a key factor influencing the Fed's policy stance.
Market confidence in policy easing was bolstered by last week’s weak nonfarm payrolls report, which suggested cooling labor market conditions. The Labor Department also lowered its estimate for job growth through March, suggesting that employment gains had already slowed before U.S. President Donald Trump imposed aggressive tariffs on imports.
Meanwhile, a federal judge on Tuesday temporarily blocked Trump's attempt to remove Federal Reserve Governor Tim Cook, an early setback for the White House in a legal battle that threatens the Fed's independence.
Spot silver rose 0.8% to $41.21 an ounce, platinum rose 1.7% to $1,391.80, and palladium rose nearly 3% to $1,180.81.
Oil prices settled higher on Wednesday, rising more than $1 a barrel as investors worried about potential supply disruptions after Poland shot down a drone in its airspace and as the United States pushed for new sanctions on Russian oil buyers, but a report on rising U.S. inventories capped gains.
Brent crude futures settled up 1.7% at $67.49 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 1.7% to $63.67 a barrel.
Geopolitical tensions have heightened after Poland shot down a drone flying over its airspace during Russia's offensive in western Ukraine, marking the first shot fired by a NATO member in the Russia-Ukraine war.
Oil prices rose 0.6% on Tuesday after Israel said it struck a leader of the Palestinian militant group Hamas in Doha. Both benchmarks surged nearly 2% shortly after the attack before giving up most of those gains. Still, there was no immediate threat of oil supply disruptions.
European Union officials are discussing sanctions on Russia in Washington, with European Commission President Ursula von der Leyen saying on Wednesday the bloc is considering accelerating its phase-out of Russian fossil fuels as part of new measures against Moscow.
Traders expect the Federal Reserve to cut interest rates at its Sept. 16-17 meeting, which could boost economic activity and oil demand.
The U.S. Energy Information Administration (EIA) said U.S. crude oil, gasoline and distillate inventories all increased last week, a bearish signal for the near-term supply outlook.
The EIA said crude inventories rose by 3.9 million barrels in the week to Sept. 5. Analysts polled by Reuters had expected a 1 million-barrel draw.
U.S. gasoline inventories rose by 1.5 million barrels last week, compared with analysts’ expectations for a 200,000-barrel draw. Distillate fuel inventories, which include diesel and heating oil, rose by 4.7 million barrels, compared with expectations for a 35,000-barrel increase.
The US dollar rose and fell on Wednesday, but the fluctuations were small and the trend lacked a clear direction. Previously released data showed that the US producer price index (PPI) unexpectedly fell in August, further consolidating market expectations that the Federal Reserve will resume interest rate cuts this month.
The dollar fell slightly against the yen to 147.31 yen after the data was released, while the euro was flat at $1.1706. The dollar had risen modestly against both currencies during the session.
The U.S. Labor Department reported a 0.1% month-over-month decline in the final demand producer price index (PPI) in August. July's data was revised downward to a 0.7% increase, compared to the previously reported 0.9%. Economists polled by Reuters had expected the PPI to rise 0.3% month-over-month in August. The PPI rose 2.6% year-over-year in August, below the 3.3% expected by economists.
Karl Schamotta, chief market strategist at Corpay in Toronto, said the market's expectations for a 50 basis point rate cut have increased, but remain very low. The economy is indeed slowing, but it shows no signs of collapse and may even accelerate in the coming months. Inflationary pressures appear muted, but risks remain skewed to the upside. A 25 basis point rate cut remains the most likely base case scenario for most market participants.
Following the data release, the CME Group's FedWatch tool showed the federal funds futures market now pricing in a 90% probability of a 25 basis point rate cut and a 10% probability of a 50 basis point cut by the Fed this month. That compares to 93% and 7% predictions, respectively, late Tuesday.
After the release of the PPI data, investors' focus turned to the August Consumer Price Index (CPI) to be released on Thursday. The survey showed that analysts expected the CPI to rise by 0.3% month-on-month and 2.9% year-on-year.
Meanwhile, geopolitical tensions continued to simmer overnight and into Wednesday.
Investor sentiment was jittery after Israel launched an airstrike on Qatar on Tuesday in an attempt to assassinate a Hamas leader, while Poland shot down a drone that entered its airspace during Russia's offensive in western Ukraine.
The euro rose 0.3% against the Polish złoty to 4.259 złoty, its biggest one-day gain since August 11.
The dollar index which measures the greenback against six major currencies edged down to 97.74, bringing its loss this year to 10%, weighed down by chaotic U.S. trade and fiscal policies and growing concerns about the Federal Reserve's independence.
Markets showed little reaction to a court ruling that temporarily blocked President Donald Trump from removing Federal Reserve Governor Tim Cook, a case that could ultimately reach the U.S. Supreme Court.
Separate data on Tuesday showed the U.S. economy probably created 911,000 fewer jobs than previously estimated in the 12 months to March, suggesting job growth was already slowing before Trump imposed aggressive tariffs on imports.
However, the data did not provide much clues about job growth since March, leaving market expectations for U.S. interest rates unchanged for the time being.
Qatari Prime Minister: Qatar is reassessing its role as mediator in Gaza conflict
On September 10th, local time, Qatari Prime Minister and Foreign Minister Mohammed stated that Qatar is reassessing its role as a mediator in the Gaza conflict. Mohammed said that Israeli Prime Minister Netanyahu's involvement in Qatar's mediation of the Gaza conflict is a complete "waste" of Qatar's time. He accused Netanyahu of pushing the Middle East into "chaos" and endangering the entire Gulf region. He also revealed that Qatar is reassessing the fate of senior leaders of the Palestinian Islamic Resistance Movement (Hamas) in Qatar. (CCTV News)
Mexico seeks to raise tariffs on Asian-made cars to as much as 50%
Mexican Economy Minister Marcelo Ebrard said the country is seeking to raise tariffs on Asian-made cars to as much as 50%. "We are raising tariffs because the prices of cars arriving in Mexico are below what we call the reference price," Ebrard said on the sidelines of an event in the state of Mexico on Wednesday. "Our main goal is to protect jobs, and we estimate that there are about 320,000 jobs directly linked to the trade flow of these products." Earlier, President Sheinbaum said the government is seeking to impose tariffs on countries that do not have trade agreements with Mexico as part of its "Plan Mexico" to revitalize domestic manufacturing.
U.S. Department of Energy announces funding program for domestic gallium production projects
The U.S. Department of Energy's Office of Fossil Energy and Carbon Management announced on September 10th local time the launch of the Gallium Recovery and Advanced Critical Materials Extraction (TRACE-Ga) program, aimed at establishing a secure and independent domestic gallium supply chain. The program will support the development of innovative, economically viable technologies for recovering gallium from U.S. metal processing feedstock, furthering President Trump's commitment to strengthening the nation's critical mineral supply chain. The proposed project will test and validate a gallium recovery prototype technology, with the goal of producing at least 50 kilograms of high-purity gallium in a real-world industrial metal processing process, over at least one 14-day run. The project aims to demonstrate the feasibility of a prototype technology capable of producing at least one metric ton of gallium annually. Applicants for the TRACE-Ga funding opportunity must qualify as domestic entities. The U.S. Department of Energy plans to open applications for the project in the coming weeks.
The third-largest European Parliament political group has tabled a motion of no confidence against von der Leyen.
The third-largest political group in the European Parliament, Patriots of Europe, announced on the 10th in Strasbourg, France, that it would submit a motion of no confidence against the European Commission, led by Ursula von der Leyen. The motion has reportedly received signatures from 85 MEPs, exceeding the minimum threshold of 72 signatures required to initiate the relevant process. The Patriots of Europe group accused the current European Commission of a complete failure in trade, transparency, and accountability. Kinga Gay, the group's first vice-president, stated during the plenary session of the European Parliament that the European Commission had failed to address the most pressing challenges facing Europe and had failed in areas such as peace, trade, and immigration. "It is time for Ursula von der Leyen to step down," he said. (Xinhua News Agency)
Oracle's Larry Ellison's total wealth reaches $401.9 billion, becoming the second person in history to have a net worth exceeding $400 billion.
Forbes' real-time rich list shows that Oracle co-founder Larry Ellison's total wealth has reached $401.9 billion, a daily increase of $110 billion, or 37%, making him the second person in history to have his net worth surpass $400 billion. The list also shows that Tesla CEO and SpaceX founder Elon Musk's latest wealth is $440.4 billion, maintaining his position as the world's richest man. However, due to different statistical methods, some lists believe that Ellison has surpassed Musk to become the world's richest person. According to the latest data from the Bloomberg Billionaires Index, Larry Ellison's wealth has reached $393 billion, surpassing Musk's $385 billion to become the world's richest person.
Russian Prime Minister: Russia's GDP grew by 1.1% from January to July
Russian Prime Minister Mikhail Mishustin stated at a conference on economic issues that Russia's GDP grew by 1.1% from January to July 2025. Mishustin had earlier stated that Russia's GDP grew by 5% in the first five months of 2024. Mishustin stated at the conference that a certain degree of economic cooling was inevitable. "A certain degree of cooling is inevitable, and we had predicted this long ago. The period of the first round of anti-crisis policymaking has ended."
Swiss National Bank President: Will return to negative interest rates if necessary
Swiss National Bank President Schlegel stated that the central bank would not shy away from lowering borrowing costs below zero if absolutely necessary. With just two weeks until the quarterly interest rate decision, Schlegel stressed that he and his colleagues are prepared to return to the policy stance they exited three years ago if necessary. At that time, policymakers will decide whether to maintain the current 0% interest rate level. "If it is absolutely necessary, we will not hesitate," Schlegel said. Several officials, including Schlegel, have previously stated that because negative interest rates could have adverse effects on pensions and the financial system, the threshold for a rate cut is higher than for other policy adjustments. Most economists expect policymakers to keep interest rates unchanged at the September 25 meeting; a few predict a 25 basis point cut to -0.25%.
Tariff war triggers public sentiment backlash, Canadian self-driving tourism to the United States has fallen for eight consecutive months
Last month, the number of Canadians traveling by car to the United States fell year-on-year for the eighth consecutive month, demonstrating their determination to resist the United States. Data released by Statistics Canada on Wednesday showed that the number of people driving back to Canada from the United States fell 33.9% year-on-year in August. The number of Canadian residents flying to and from the United States also fell by 25.4%, while the number from other countries increased by 6.6%. The number of American residents driving to Canada fell by 4.5% year-on-year last month, the seventh consecutive month of decline; the number of American residents arriving in Canada by air fell by 3.6%. However, the number of visitors arriving from other overseas countries increased by 4.6%. Trump's tariff policy and his remarks that "Canada should become the 51st state of the United States" have angered many Canadians; at the same time, his tough approach to immigration has also made some travelers worried about cross-border travel.
Expanding the two-way opening of the futures market, the number of tradable products for qualified foreign investors has increased to 95.
On September 10th, five products, including fuel oil options, petroleum asphalt options, and pulp options, were officially listed for trading. At the same time, four products, including petroleum asphalt futures and options, fuel oil options, and pulp options, were officially included in the trading scope of qualified foreign investors (including qualified foreign institutional investors and RMB qualified foreign institutional investors, hereinafter referred to as "QFIs"). This brings the number of futures and options products tradable by QFIs to 95. Many industry insiders stated that the introduction of new products can effectively enhance the risk resilience of the industrial chain. Expanding the number of QFI-tradable products will enhance international competitiveness, help form "Chinese prices," and attract global factor participation. It is also of great significance to the high-level two-way opening of the futures market.
The attractiveness of Chinese assets has significantly increased, and global "long money" has increased its allocation efforts
Recent data shows that overseas "long money" is accelerating its purchases of Chinese assets. Invesco's emerging market fund, a US asset management giant, significantly increased its holdings of JD.com, Yili Group, and Alibaba in July. A Goldman Sachs report shows that domestic equity funds saw net inflows of $6.55 billion over the past month, leading emerging markets. Furthermore, many overseas-listed Chinese stock ETFs have also seen growth since the second half of the year. At this point in time, many foreign institutions believe that favorable factors such as China's stabilizing economic recovery, the increasing competitiveness of its technology sector, and the near certainty of a Federal Reserve interest rate cut will collectively drive global capital allocation to Chinese assets.
Focus on the day
stock market
The S&P 500 and Nasdaq closed at record highs on Wednesday as Oracle surged and weaker-than-expected inflation data bolstered expectations of a Federal Reserve interest rate cut next week.
Oracle surged 36%, its biggest one-day percentage gain since 1992, after the tech company noted a surge in demand for its cloud services from artificial intelligence companies.
Its stock market capitalization reached $922 billion, surpassing Eli Lilly, JPMorgan Chase and Walmart and approaching Tesla's $1.12 trillion market capitalization.
Artificial intelligence-related chip stocks also rose, with Nvidia up 3.8%, Broadcom soaring 10%, and Advanced Micro Devices climbing 2.4%. The PHLX chip index rose 2.3%, hitting a record high.
Data center power suppliers also benefited, with Constellation Energy, Vistra, and GE Vernova all rising more than 6%. Apple, considered by many investors to be a laggard in artificial intelligence, fell 3.2%, extending its decline to a fourth consecutive day. Weaker-than-expected producer price data provided additional momentum as traders increased bets on interest rate cuts this year.
Recent labor market data confirms that the U.S. job market is slowing. CME Group's FedWatch tool shows that traders fully priced in the probability that the Federal Reserve will cut interest rates by at least 25 basis points at its policy meeting next week, with a 10% chance of a 50 basis point cut.
The S&P 500 has climbed about 11% so far in 2025, while the Nasdaq has risen about 13%.
"The fundamentals for the domestic stock market remain very strong, but we also have to acknowledge that valuations are stretched, which puts some natural pressure on the upward trajectory," said Bill Northey, senior investment director at U.S. Bank Wealth Management.
The S&P 500 rose 0.30% to close at 6,532.04, marking its second consecutive record high. The Nasdaq Composite rose 0.03% to 21,886.06, its third consecutive record high. The Dow Jones Industrial Average fell 0.48% to 45,490.92.
Six of the 11 S&P 500 sectors fell, led by consumer discretionary, which fell 1.58%, followed by consumer staples, which fell 1.06%.
Investors will now focus on consumer price data due on Thursday for clues on the direction of U.S. inflation.
"Combining the softer data (PPI) with the Fed's increased emphasis on the labor market and the downward revisions we're seeing in monthly payroll data, all of that supports expectations for a rate cut," said Jordan Rizzuto, CIO of GammaRoad Capital Partners.
A federal judge on Tuesday temporarily blocked President Trump from removing Federal Reserve Governor Tim Cook from his post, dealing a setback for the White House.
Barclays and Deutsche Bank raised their year-end targets for the S&P 500, citing strong corporate earnings, resilient U.S. economic growth and optimism about artificial intelligence.
Chip design software provider Synopsys plunged 36%, its biggest one-day drop ever, after its quarterly revenue fell short of Wall Street expectations. Rival Cadence Design Systems fell 6.4%.
Gold Market
Gold prices hovered near a record high on Wednesday, supported by expectations that the Federal Reserve will resume interest rate cuts at its meeting next week after weaker-than-expected U.S. inflation data.
Spot gold was trading at $3,647.94 an ounce, up 0.6% after hitting a record high of $3,673.95 on Tuesday. U.S. gold futures for December delivery were unchanged at $3,682.
Data from the U.S. Department of Labor showed that the U.S. Producer Price Index (PPI) unexpectedly fell month-on-month in August due to falling service prices.
"Any further weakness in U.S. data will continue to support gold, with expectations of two or more rate cuts before the end of the year," said Fawad Razaqzada, market analyst at City Index and FOREX.com. Gold has rallied more than 39% so far this year.
According to the CME Group's FedWatch tool, the market is pricing in a 90% chance of a 25 basis point rate cut at the Fed's September 16-17 meeting, with a small chance of a larger cut. Attention now turns to Thursday's Consumer Price Index (CPI), which will be a key factor influencing the Fed's policy stance.
Market confidence in policy easing was bolstered by last week’s weak nonfarm payrolls report, which suggested cooling labor market conditions. The Labor Department also lowered its estimate for job growth through March, suggesting that employment gains had already slowed before U.S. President Donald Trump imposed aggressive tariffs on imports.
Meanwhile, a federal judge on Tuesday temporarily blocked Trump's attempt to remove Federal Reserve Governor Tim Cook, an early setback for the White House in a legal battle that threatens the Fed's independence.
Spot silver rose 0.8% to $41.21 an ounce, platinum rose 1.7% to $1,391.80, and palladium rose nearly 3% to $1,180.81.
Oil Market
Oil prices settled higher on Wednesday, rising more than $1 a barrel as investors worried about potential supply disruptions after Poland shot down a drone in its airspace and as the United States pushed for new sanctions on Russian oil buyers, but a report on rising U.S. inventories capped gains.
Brent crude futures settled up 1.7% at $67.49 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 1.7% to $63.67 a barrel.
Geopolitical tensions have heightened after Poland shot down a drone flying over its airspace during Russia's offensive in western Ukraine, marking the first shot fired by a NATO member in the Russia-Ukraine war.
Oil prices rose 0.6% on Tuesday after Israel said it struck a leader of the Palestinian militant group Hamas in Doha. Both benchmarks surged nearly 2% shortly after the attack before giving up most of those gains. Still, there was no immediate threat of oil supply disruptions.
European Union officials are discussing sanctions on Russia in Washington, with European Commission President Ursula von der Leyen saying on Wednesday the bloc is considering accelerating its phase-out of Russian fossil fuels as part of new measures against Moscow.
Traders expect the Federal Reserve to cut interest rates at its Sept. 16-17 meeting, which could boost economic activity and oil demand.
The U.S. Energy Information Administration (EIA) said U.S. crude oil, gasoline and distillate inventories all increased last week, a bearish signal for the near-term supply outlook.
The EIA said crude inventories rose by 3.9 million barrels in the week to Sept. 5. Analysts polled by Reuters had expected a 1 million-barrel draw.
U.S. gasoline inventories rose by 1.5 million barrels last week, compared with analysts’ expectations for a 200,000-barrel draw. Distillate fuel inventories, which include diesel and heating oil, rose by 4.7 million barrels, compared with expectations for a 35,000-barrel increase.
foreign exchange market
The US dollar rose and fell on Wednesday, but the fluctuations were small and the trend lacked a clear direction. Previously released data showed that the US producer price index (PPI) unexpectedly fell in August, further consolidating market expectations that the Federal Reserve will resume interest rate cuts this month.
The dollar fell slightly against the yen to 147.31 yen after the data was released, while the euro was flat at $1.1706. The dollar had risen modestly against both currencies during the session.
The U.S. Labor Department reported a 0.1% month-over-month decline in the final demand producer price index (PPI) in August. July's data was revised downward to a 0.7% increase, compared to the previously reported 0.9%. Economists polled by Reuters had expected the PPI to rise 0.3% month-over-month in August. The PPI rose 2.6% year-over-year in August, below the 3.3% expected by economists.
Karl Schamotta, chief market strategist at Corpay in Toronto, said the market's expectations for a 50 basis point rate cut have increased, but remain very low. The economy is indeed slowing, but it shows no signs of collapse and may even accelerate in the coming months. Inflationary pressures appear muted, but risks remain skewed to the upside. A 25 basis point rate cut remains the most likely base case scenario for most market participants.
Following the data release, the CME Group's FedWatch tool showed the federal funds futures market now pricing in a 90% probability of a 25 basis point rate cut and a 10% probability of a 50 basis point cut by the Fed this month. That compares to 93% and 7% predictions, respectively, late Tuesday.
After the release of the PPI data, investors' focus turned to the August Consumer Price Index (CPI) to be released on Thursday. The survey showed that analysts expected the CPI to rise by 0.3% month-on-month and 2.9% year-on-year.
Meanwhile, geopolitical tensions continued to simmer overnight and into Wednesday.
Investor sentiment was jittery after Israel launched an airstrike on Qatar on Tuesday in an attempt to assassinate a Hamas leader, while Poland shot down a drone that entered its airspace during Russia's offensive in western Ukraine.
The euro rose 0.3% against the Polish złoty to 4.259 złoty, its biggest one-day gain since August 11.
The dollar index which measures the greenback against six major currencies edged down to 97.74, bringing its loss this year to 10%, weighed down by chaotic U.S. trade and fiscal policies and growing concerns about the Federal Reserve's independence.
Markets showed little reaction to a court ruling that temporarily blocked President Donald Trump from removing Federal Reserve Governor Tim Cook, a case that could ultimately reach the U.S. Supreme Court.
Separate data on Tuesday showed the U.S. economy probably created 911,000 fewer jobs than previously estimated in the 12 months to March, suggesting job growth was already slowing before Trump imposed aggressive tariffs on imports.
However, the data did not provide much clues about job growth since March, leaving market expectations for U.S. interest rates unchanged for the time being.
International News
Qatari Prime Minister: Qatar is reassessing its role as mediator in Gaza conflict
On September 10th, local time, Qatari Prime Minister and Foreign Minister Mohammed stated that Qatar is reassessing its role as a mediator in the Gaza conflict. Mohammed said that Israeli Prime Minister Netanyahu's involvement in Qatar's mediation of the Gaza conflict is a complete "waste" of Qatar's time. He accused Netanyahu of pushing the Middle East into "chaos" and endangering the entire Gulf region. He also revealed that Qatar is reassessing the fate of senior leaders of the Palestinian Islamic Resistance Movement (Hamas) in Qatar. (CCTV News)
Mexico seeks to raise tariffs on Asian-made cars to as much as 50%
Mexican Economy Minister Marcelo Ebrard said the country is seeking to raise tariffs on Asian-made cars to as much as 50%. "We are raising tariffs because the prices of cars arriving in Mexico are below what we call the reference price," Ebrard said on the sidelines of an event in the state of Mexico on Wednesday. "Our main goal is to protect jobs, and we estimate that there are about 320,000 jobs directly linked to the trade flow of these products." Earlier, President Sheinbaum said the government is seeking to impose tariffs on countries that do not have trade agreements with Mexico as part of its "Plan Mexico" to revitalize domestic manufacturing.
U.S. Department of Energy announces funding program for domestic gallium production projects
The U.S. Department of Energy's Office of Fossil Energy and Carbon Management announced on September 10th local time the launch of the Gallium Recovery and Advanced Critical Materials Extraction (TRACE-Ga) program, aimed at establishing a secure and independent domestic gallium supply chain. The program will support the development of innovative, economically viable technologies for recovering gallium from U.S. metal processing feedstock, furthering President Trump's commitment to strengthening the nation's critical mineral supply chain. The proposed project will test and validate a gallium recovery prototype technology, with the goal of producing at least 50 kilograms of high-purity gallium in a real-world industrial metal processing process, over at least one 14-day run. The project aims to demonstrate the feasibility of a prototype technology capable of producing at least one metric ton of gallium annually. Applicants for the TRACE-Ga funding opportunity must qualify as domestic entities. The U.S. Department of Energy plans to open applications for the project in the coming weeks.
The third-largest European Parliament political group has tabled a motion of no confidence against von der Leyen.
The third-largest political group in the European Parliament, Patriots of Europe, announced on the 10th in Strasbourg, France, that it would submit a motion of no confidence against the European Commission, led by Ursula von der Leyen. The motion has reportedly received signatures from 85 MEPs, exceeding the minimum threshold of 72 signatures required to initiate the relevant process. The Patriots of Europe group accused the current European Commission of a complete failure in trade, transparency, and accountability. Kinga Gay, the group's first vice-president, stated during the plenary session of the European Parliament that the European Commission had failed to address the most pressing challenges facing Europe and had failed in areas such as peace, trade, and immigration. "It is time for Ursula von der Leyen to step down," he said. (Xinhua News Agency)
Oracle's Larry Ellison's total wealth reaches $401.9 billion, becoming the second person in history to have a net worth exceeding $400 billion.
Forbes' real-time rich list shows that Oracle co-founder Larry Ellison's total wealth has reached $401.9 billion, a daily increase of $110 billion, or 37%, making him the second person in history to have his net worth surpass $400 billion. The list also shows that Tesla CEO and SpaceX founder Elon Musk's latest wealth is $440.4 billion, maintaining his position as the world's richest man. However, due to different statistical methods, some lists believe that Ellison has surpassed Musk to become the world's richest person. According to the latest data from the Bloomberg Billionaires Index, Larry Ellison's wealth has reached $393 billion, surpassing Musk's $385 billion to become the world's richest person.
Russian Prime Minister: Russia's GDP grew by 1.1% from January to July
Russian Prime Minister Mikhail Mishustin stated at a conference on economic issues that Russia's GDP grew by 1.1% from January to July 2025. Mishustin had earlier stated that Russia's GDP grew by 5% in the first five months of 2024. Mishustin stated at the conference that a certain degree of economic cooling was inevitable. "A certain degree of cooling is inevitable, and we had predicted this long ago. The period of the first round of anti-crisis policymaking has ended."
Swiss National Bank President: Will return to negative interest rates if necessary
Swiss National Bank President Schlegel stated that the central bank would not shy away from lowering borrowing costs below zero if absolutely necessary. With just two weeks until the quarterly interest rate decision, Schlegel stressed that he and his colleagues are prepared to return to the policy stance they exited three years ago if necessary. At that time, policymakers will decide whether to maintain the current 0% interest rate level. "If it is absolutely necessary, we will not hesitate," Schlegel said. Several officials, including Schlegel, have previously stated that because negative interest rates could have adverse effects on pensions and the financial system, the threshold for a rate cut is higher than for other policy adjustments. Most economists expect policymakers to keep interest rates unchanged at the September 25 meeting; a few predict a 25 basis point cut to -0.25%.
Tariff war triggers public sentiment backlash, Canadian self-driving tourism to the United States has fallen for eight consecutive months
Last month, the number of Canadians traveling by car to the United States fell year-on-year for the eighth consecutive month, demonstrating their determination to resist the United States. Data released by Statistics Canada on Wednesday showed that the number of people driving back to Canada from the United States fell 33.9% year-on-year in August. The number of Canadian residents flying to and from the United States also fell by 25.4%, while the number from other countries increased by 6.6%. The number of American residents driving to Canada fell by 4.5% year-on-year last month, the seventh consecutive month of decline; the number of American residents arriving in Canada by air fell by 3.6%. However, the number of visitors arriving from other overseas countries increased by 4.6%. Trump's tariff policy and his remarks that "Canada should become the 51st state of the United States" have angered many Canadians; at the same time, his tough approach to immigration has also made some travelers worried about cross-border travel.
Domestic News
Expanding the two-way opening of the futures market, the number of tradable products for qualified foreign investors has increased to 95.
On September 10th, five products, including fuel oil options, petroleum asphalt options, and pulp options, were officially listed for trading. At the same time, four products, including petroleum asphalt futures and options, fuel oil options, and pulp options, were officially included in the trading scope of qualified foreign investors (including qualified foreign institutional investors and RMB qualified foreign institutional investors, hereinafter referred to as "QFIs"). This brings the number of futures and options products tradable by QFIs to 95. Many industry insiders stated that the introduction of new products can effectively enhance the risk resilience of the industrial chain. Expanding the number of QFI-tradable products will enhance international competitiveness, help form "Chinese prices," and attract global factor participation. It is also of great significance to the high-level two-way opening of the futures market.
The attractiveness of Chinese assets has significantly increased, and global "long money" has increased its allocation efforts
Recent data shows that overseas "long money" is accelerating its purchases of Chinese assets. Invesco's emerging market fund, a US asset management giant, significantly increased its holdings of JD.com, Yili Group, and Alibaba in July. A Goldman Sachs report shows that domestic equity funds saw net inflows of $6.55 billion over the past month, leading emerging markets. Furthermore, many overseas-listed Chinese stock ETFs have also seen growth since the second half of the year. At this point in time, many foreign institutions believe that favorable factors such as China's stabilizing economic recovery, the increasing competitiveness of its technology sector, and the near certainty of a Federal Reserve interest rate cut will collectively drive global capital allocation to Chinese assets.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
