China Seeks Revival of U.S. Trade Ties: A New Chapter on the Horizon

Hello, Market Reader’s

Japan’s core inflation cooled to 3.3% in June, down from May’s 29-month high of 3.7%, marking a welcome chill but still well above the Bank of Japan’s 2% target. The key “core‑core” rate, excluding both fresh food and energy, held firm at roughly 3.4%, signaling resilient domestic demand. With rice prices finally easing off historic peaks and gasoline subsidies softening the blow, inflation has paused but not disappeared. As the BOJ heads into its July 30–31 meeting, it faces a tightrope: contain stubborn inflation without tipping the fragile economy over, especially under looming U.S. tariff threats making this a watershed moment for policy watchers.

Today’s Global Menu

• Focal Point

• World Markets

• Frontier News

• Crypto World

Focal Point

📦 China Signals It’s Ready to Reboot US Trade Relations What This Could Mean

After years of tariffs, tech restrictions, and diplomatic chill, China is extending an olive branch to the U.S. and this time, it’s serious.

🚨 Key Update:
China’s Vice Commerce Minister Wang Shouwen emphasized a “return to normal trade” with the U.S., amid deepening economic pressure at home and a push to stabilize global supply chains. He called for the rollback of tariffs and emphasized "non-discriminatory" treatment of Chinese firms.

💡 What’s driving this shift?

• China’s post-COVID economic rebound has stalled

• Foreign investment has slowed

• The U.S. remains a top export destination and tech competitor

Why it matters to business leaders:
✅ A thaw could mean cheaper inputs, less volatility
✅ Tech and manufacturing supply chains may get smoother
✅ Cross-border capital flow could see renewed interest

But the road isn’t clear yet. U.S. political skepticism remains high. Still, China’s message is clear: It doesn’t want decoupling. It wants reconnection.

Watch this space because geopolitics is now a direct driver of global growth.

World Markets

📈 Asia Markets Hold Steady Amid Mixed Global Cues What Investors Need to Watch

Asian stock markets opened cautiously this week, reflecting a mix of global optimism and regional headwinds.

🔹 Japan’s Nikkei rebounded after recent tech stock sell-offs
🔹 South Korea’s Kospi showed gains, led by chipmakers
🔹 Hong Kong’s Hang Seng remained under pressure due to property-sector concerns
🔹 India’s Sensex traded flat as investors awaited cues on GST and global oil dynamics

🧭 What’s guiding investor sentiment now?

• U.S. inflation shows signs of cooling boosting hopes of rate cuts

• China’s GDP data slightly beat expectations, but growth remains fragile

• Earnings season in the U.S. and Asia is likely to set the next market direction

💡 Takeaway for investors:
We’re in a phase of global recalibration. There’s no singular trend just interconnected signals.

📊 This is a time to be sector-specific and fundamentals-focused.
🔍 Watch tech, energy, and export-led stocks in Asia closely.
🧠 Macro data + micro earnings = your best investment map.

When markets are mixed, clarity comes not from headlines but from staying focused on the signals behind them.

FRONTIER NEWS

1. Charge: The U.S. Commerce Department slapped a 93.5% anti‑dumping tariff on Chinese anode‑grade graphite an essential material for EV batteries after determining it was sold far below market value. The move could recalibrate the EV supply chain, boosting domestic and non‑Chinese miners while rattling Chinese suppliers.

2. Renovation: Fed Chair Powell defended the $2.5 billion renovation of the Federal Reserve headquarters in a letter to the White House, emphasizing stewardship of public funds and historic preservation. With critics seizing on cost overruns, this becomes more than bricks and mortar it’s about institutional credibility and political optics.

3. Cut: Fed Governor Waller made a splash by urging a 25‑basis‑point rate cut in July, arguing tariffs pose only short‑term inflation risks while economic momentum slows. As the July 29–30 meeting approaches, markets are watching closely will the Fed act decisively or sit tight?

4 Surge: U.S. stocks rallied on July 17, with the S&P 500 and Nasdaq hitting record highs, thanks to a surprisingly strong 0.6% June retail sales report. Even as tariffs loom on August 1, consumer spending remains robust leaving investors betting big that shoppers will carry the economy forward.

Crypto World

I. Momentum: The crypto market’s total value has tumbled two-thirds since January, now plummeting below the $1 trillion mark as volatility continues and investor sentiment sours illustrating just how fickle the digital gold rush can be.

II. Milestone: The U.S. House passed the GENIUS Act, a landmark bill to regulate stablecoins approved 308–122 and is racing to President Trump’s desk, alongside the Clarity Act and a CBDC ban. It’s the first major federal move, bringing order to a chaotic crypto realm.

III. Unlock: Investors in Trump-linked World Liberty Financial voted with 99.94% approval to unlock the $WLFI governance token for public trading. This fast-approaching tradability could trigger speculative waves and ethics alarms as Trump family insiders stand to gain from the move.

IV. Surge: Crypto thefts are hitting record highs in 2025, with hackers relishing the lawlessness of digital assets. FBI and cybersecurity units are scrambling to catch up but with each breach, confidence erodes.

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Thanks for reading.

Until tomorrow!

Hanoomaan Global Markets team

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