U.S. Developments

Shutdown Risk Eases; Trump to Announce Fed Chair Pick Soon

President Trump has reached a temporary funding agreement with Senate Democrats. Funding for the Department of Homeland Security (DHS) is carved out, while most federal agencies are funded through September 30 under a two-week stopgap measure, allowing continued negotiations over immigration enforcement limits. This suggests only a brief weekend shutdown with limited market impact.

Meanwhile, Iran-related tail risks are rising, including Hormuz Strait drills, increased U.S. readiness, and speculation about potential airstrikes. These developments have lifted oil prices and risk premiums.

Trump also stated that he will announce the next Federal Reserve Chair imminently and expects the new leader to push for interest rate cuts.

Apple beat expectations, supported by stronger iPhone sales in Greater China, while guidance remained broadly in line. Jobless claims continue to point to a “low-layoff, weak-equilibrium” labor market.

China–UK relations have improved with multiple deliverables, including visa-free entry, lower Scotch whisky tariffs, and a large China investment by AstraZeneca, although the overall scale is smaller than the China–Canada deal.#MarketCorrection #WhoIsNextFedChair #TRUMP #PreciousMetalsBoom #BREAKING