Phillip Investor Centre

📈 Market Update: Trade Tensions Escalate as Investors Await Nvidia Earnings 🌎 U.S.-Canada Trade War Deepens Trade relations between the U.S. and Canada deteriorated further after both countries imposed 50% tariffs on a wide range of imports following the collapse of trade negotiations. Key Developments - Canada announced retaliatory tariffs on more than US$20 billion worth of U.S. goods. - New Canadian tariffs include U.S. steel, aluminum, dairy, seafood, appliances, wood products and apparel. - President Trump threatened to raise tariffs on Canadian autos, auto parts, trucks and steel to 50% from January 2027. Investor Focus - Steel & Aluminum Sector: Higher tariffs could increase volatility for North American steel and metals producers. - Automotive Sector: Additional tariffs on vehicles and auto parts may raise supply chain costs across the North American auto industry. ———— 🇮🇷 U.S. Launches Economic Offensive Against Iran Treasury Secretary Scott Bessent unveiled what he described as an "economic D-Day" campaign aimed at isolating Iran from the global financial system. Key Developments - Countries and businesses facilitating Iranian trade face potential exclusion from the U.S. dollar system. - The U.S. is pressuring global financial institutions to cease activities linked to Iran. - Iran is working with Oman on efforts to restore shipping routes through the Strait of Hormuz. Investor Focus - Energy Markets: Developments surrounding the Strait of Hormuz remain critical for global oil supply and energy price stability. ———— 🇨🇳 China Expands Alternative Payment Infrastructure As Washington increases sanctions pressure, China continues developing alternatives to the dollar-dominated financial system. Key Developments - China's Cross-Border Interbank Payment System (CIPS) continues to grow. - Beijing is seeking greater flexibility in international trade settlements while maintaining access to the global financial system. Investor Focus - No immediate listed stock impact, but investors should monitor long-term developments in global payment systems and reserve currency diversification. ———— 📊 U.S. Markets Mixed Ahead of Key Catalysts U.S. equities traded cautiously as investors positioned ahead of several major market events. Key Events This Week - Nvidia earnings release. - U.S. PCE inflation report. - Federal Reserve Chairman Kevin Warsh's Jackson Hole speech. Investor Focus - Nvidia (NVDA): Results and guidance are expected to influence sentiment across the AI and semiconductor sectors. - Advanced Micro Devices (AMD): +4.9% - Micron Technology (MU): +2.5% - Semiconductor stocks rebounded ahead of Nvidia's earnings announcement. ———— 🤖 AI Infrastructure Remains In Focus Competition for AI talent and infrastructure continues to intensify. Key Developments - OpenAI's Head of Data Centers Chris Malone has departed, adding to a series of executive exits. - Investors continue to monitor AI infrastructure spending trends and data center expansion plans. Investor Focus - Nvidia (NVDA): Investors are looking for updates on AI inference demand and integration of Groq technology following Nvidia's acquisition. - AI infrastructure spending remains a key driver for semiconductor demand. ———— ₿ Bitcoin Extends Strong Recovery Bitcoin climbed above US$80,000 for the first time since May. Key Developments - Bitcoin rallied more than 20% over the past week. - Spot Bitcoin ETF inflows and improving risk sentiment have supported the move. Investor Focus - Positive momentum continues across the cryptocurrency market as institutional participation improves. ———— 🥇 Gold Hits Three-Month High Gold continued its strong rally amid a softer U.S. dollar and Treasury buyback expectations. Key Developments - Gold has gained more than 15% this month. - Treasury bond buyback plans have helped stabilize bond markets and support precious metals demand. Investor Focus - Gold remains a preferred hedge amid geopolitical uncertainty, trade tensions and evolving monetary policy expectations.