policy

In July, the US CPI rose by 0.1% month-on-month and 3.4% year-on-year, while the core CPI increased by 2.5% year-on-year, overall in line with market expectations. As the market continues to assess the Federal Reserve's subsequent policy path, the impact of macro changes on asset allocation and trading strategies is continuously strengthening, further enhancing institutions' focus on liquidity management and trading execution efficiency.Against this backdrop, Gate institutions are continuously improving professional trading infrastructure. According to the transparency report released by the platform in July, Gate CrossEx added one mainstream exchange and 23 trading pairs, launched RPI Orders, reduced the highest fees of multiple exchanges by 50%, and introduced new APIs for market data, funding rates, batch order cancellations, and several WebSocket features; by optimizing concurrent order placement and execution feedback delays, system performance improved by 50%, while the launch of Colo services further reduced trading latency.In addition, SuperLink continues to optimize Fireblocks Gas management and settlement processes, further enhancing institutions' cross-platform asset management and trading collaboration capabilities. In the future, Gate institutions will continue to advance infrastructure upgrades around core capabilities such as trading execution, liquidity, and cross-platform collaboration, providing professional investors with more efficient and stable institutional-level trading services.

Economists say that the mixed July employment report released last week has heightened the importance of inflation data. LPL Financial Chief Economist Jeffrey Roach pointed out that the path of the Federal Reserve's interest rate hikes will depend on how long inflation remains elevated.Vanguard analyst Hicklin believes that the July employment report and the expected improvement in inflation will strengthen the Federal Reserve's reasons to hold steady before the end of the year. Recent data releases have bolstered market confidence that the Federal Reserve will keep interest rates unchanged this year.

According to a report by the Japan Times, informed sources say that the Bank of Japan may consider raising interest rates again at its next policy meeting scheduled for September 17 to 18, in response to the increasing risk of inflation.

The State Taxation Administration of China responded to the recent discussions on taxing insurance income in Hong Kong, stating that Chinese tax residents are required to fulfill their tax obligations on global income according to the law, and that overseas insurance income also falls within the scope of taxable income. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The tax authority indicated that residents must declare and pay taxes on overseas insurance income and other investment income in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. Currently, the taxation of insurance income from overseas sources has been initiated.

In July, the United States unexpectedly lost 23,000 jobs, far below the expected increase of 80,000. The increase in June was also revised down to only 20,000. Despite the weak job market, the unemployment rate unexpectedly fell from 4.2% to 4.1%. "Fed mouthpiece" Nick Timiraos commented that in July, the U.S. unemployment rate dropped to 4.09% because both the number of job seekers and the number counted as unemployed decreased; this data brought the unemployment rate to its lowest level in two years.Analysts pointed out that this disappointing report has reignited concerns about the labor market and may complicate the Federal Reserve's interest rate decisions, as policymakers need to seek a balance between weak employment and persistent inflation. As a result, market expectations for interest rate hikes quickly receded.Affected by this, U.S. stock index futures surged rapidly, with Nasdaq futures up 0.79% for the day, S&P 500 futures up 0.39%, and Dow futures up 0.27%. U.S. Treasury prices soared, with the yield on the 10-year U.S. Treasury currently down 4.29 basis points, reported at 4.627%; non-U.S. currencies generally rose, with the dollar against the yen briefly falling 80 points, reported at 157.72.At the same time, the U.S. Dollar Index DXY briefly fell nearly 30 points, reported at 99.67. Spot gold briefly rose about $40, reported at $4,351.43 per ounce.

SK Hynix announced a dividend of 375 Korean won per share and will announce the shareholder return policy plan in the third quarter, considering additional shareholder return measures.

U.S. Senator Elizabeth Warren has requested the U.S. Department of Commerce to explain its policy towards the UAE, which involves granting the UAE-related entities more access to AI chip exports after the UAE invested in the Trump family-supported cryptocurrency project World Liberty Financial.In a letter to Commerce Secretary Howard Lutnick, it was mentioned that an entity in Abu Dhabi invested $500 million in World Liberty Financial in January; another UAE-related company used World Liberty's USD 1 stablecoin to complete a $2 billion investment in the cryptocurrency exchange Binance. The U.S. Department of Commerce previously reclassified the UAE to Country Group A:5, allowing it to receive more license-free exports, including advanced chips. The department also stated that it would "actively review" license applications for exporting chips and servers to the UAE entity MGX involved in the $2 billion investment in Binance.Warren stated that the actions of the Department of Commerce raise significant questions about how the President's cryptocurrency business interests may affect institutional operations and national security. In June, several senators, including Warren, requested a hearing on the $500 million transaction involving World Liberty Financial.

According to Jinshi reports, Federal Reserve Governor Cook stated that so far, the policy has not led to significant unemployment.

According to Fox News, the U.S. Treasury Department has removed certain sanctions related to Iran from its website. A Treasury official stated, "This does not represent any change in U.S. policy toward the Iranian government, the Islamic Revolutionary Guard Corps Quds Force, any designated terrorist organizations or their supporters or agents. Today's removal is part of normal administrative procedures and was conducted after reviewing specific circumstances related to Fly Baghdad."Earlier, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) published an "Update on the Revocation of Terrorism Designation," lifting certain sanctions related to Iran, including removing Fly Baghdad from the sanctions list. Fly Baghdad was previously listed on the anti-terrorism sanctions list due to its association with the Iranian Islamic Revolutionary Guard Corps Quds Force.

According to Jinshi reports, the White House does not plan to publicly release its new framework for evaluating advanced artificial intelligence models; relevant details will only be provided to companies participating in the process. Companies, policymakers, researchers, and U.S. allies that are not involved in the process will not be able to understand how the government plans to implement one of its key artificial intelligence policies.The White House held a meeting with industry representatives to discuss the recently completed framework, and companies that were not invited to the meeting still do not understand the content of the framework.

According to Jinshi News, strategists indicate that the U.S. Treasury may use euros instead of dollars to fund its yen purchasing plan, in order to avoid depreciation of its own currency and to prevent its strong dollar policy from being questioned.David Forester, a senior strategist at Crédit Agricole Bank in Singapore, pointed out that the U.S. maintains a strong dollar policy and does not want to be seen as trying to gain a competitive advantage by weakening its own currency.Jason Wang, a currency strategist at the New Zealand Bank in Wellington, stated that this approach may be less transparent, but the ultimate effect is the same.

According to Jinshi, the People's Bank of China held a work meeting for the second half of 2026, deciding to continue implementing a moderately loose monetary policy. The State Administration of Foreign Exchange also held a meeting, stating that it will continue to steadily expand the institutional opening of the foreign exchange sector.In addition, the China Cotton Association opposes U.S. sanctions against Chinese cotton textile enterprises, while the State Grid indicated that electricity loads in multiple regions have reached historical highs and will take multiple measures to ensure power supply.

According to Jinshi, the People's Bank of China held a work meeting for the second half of 2026, stating that it will continue to implement a moderately loose monetary policy. The meeting emphasized the comprehensive use of various monetary policy tools to maintain ample liquidity and support the effective financing needs of the real economy.By the end of June, the total social financing scale increased by 7.4% year-on-year, and the broad money supply increased by 8% year-on-year.

According to Jinshi reports, several important events occurred domestically and internationally yesterday. The China Securities Regulatory Commission approved the registration of coking coal options, and the Beidou satellite navigation system completed its in-orbit upgrade. The State Administration for Market Regulation launched price compliance guidance for the photovoltaic industry, and the three major telecom operators will stop issuing cards through third-party internet channels.On the international front, the Bank of Japan maintained its interest rates, and the South Korean KOSPI index recorded its largest single-day increase in history. Hawkish pressure within the Federal Reserve is rising, with several officials supporting interest rate hikes.

According to Jinshi reports, Federal Reserve Chairman Waller stated that he is considering reducing the frequency of Federal Reserve policy meetings.

According to Jinshi reports, Bank of Japan Governor Kazuo Ueda stated that the Bank of Japan is expected to continue raising interest rates and will adjust the intensity of its easing policy based on economic, price, and financial conditions.

According to Jinshi reports, Bank of Japan Policy Board member Takeda Hajime proposed raising the short-term interest rate target to 1.25%.