(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, Aug 7 (Reuters) - What matters in U.S. and

global markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Wall Street and global stocks rose on Thursday, as Apple's

domestic investment push, dovish noises on interest rates and a

generally upbeat earnings season trumped chip stock hits and the

arrival of the U.S. tariff day.

The day's diary is topped by a likely Bank of England interest

rate cut and U.S. weekly jobless numbers that take on unusual

importance in light of last week's July payrolls confusion.

* Stocks in Asia and Europe pushed higher even as U.S. tariffs

were introduced, with Shanghai's index hitting its highest since

2021 following above-forecast Chinese import and export numbers

for July. Although eight major trading partners accounting for

about 40% of U.S. trade flows have reached framework deals to

reduce tariffs to 15% or less, imports from Brazil, India,

Switzerland and Canada face rates of 35% to 50%. Though, Taiwan

and South Korea are breathing sighs of relief following

exemptions from 100% chip import levies.

* Expectations for Federal Reserve easing as soon as next month

were buoyed again as two regional Fed chiefs - Minneapolis Fed

boss Neel Kashkari and San Francisco's Mary Daly - indicated

more rate cuts were coming this year. President Donald Trump

said on Wednesday he would likely appoint a temporary

replacement to Adriana Kugler's vacant Fed board seat.

Meanwhile, candidates to replace Chair Jerome Powell next year

are likely down to three, including former Fed Governor Kevin

Warsh and White House adviser Kevin Hassett.

* Fed easing speculation knocked the dollar back to 10-day lows,

with Treasury yields remaining close to the week's three-month

lows despite another underwhelming 10-year auction overnight and

a long bond sale later today. Sterling was slightly firmer

against the dollar but down on the euro, as the BoE looks set to

lower British rates by a quarter point to 4% later today.

Make sure to check out today's column, where I argue that

investors looking for the impact of Trump's tariffs are looking

at the wrong earnings season.

Today's Market Minute

* President Donald Trump's higher tariff rates of 10% to 50%

on dozens of trading partners kicked in on Thursday, testing his

strategy for shrinking U.S. trade deficits without massive

disruptions to global supply chains, higher inflation and stiff

retaliation from trading partners.

* Indian Prime Minister Narendra Modi said on Thursday he will

not compromise the interests of the country's farmers even if he

has to pay a heavy price, in his first comments after Trump's

salvo of a 50% tariff on Indian goods.

* Russian President Vladimir Putin and U.S. President Donald

Trump will meet in the coming days, Kremlin aide Yuri Ushakov

said on Thursday, in what would be the first summit between

leaders of the two countries since 2021.

* Markets' relatively speedy acceptance of higher tariffs and

threats to institutional independence raises the question: What

happened to the last 40 years of economic orthodoxy? ROI

columnist Jamie McGeever asks whether the Washington Consensus

has been broken.

* The U.S.-EU trade deal has been heavily criticised as a

capitulation by the bloc. But Panmure Liberum investment

strategist Joachim Klement argues that the European Union is

likely not only to suffer less than the U.S. but may even see

its economy benefit from the new global tariff regime.

Latest Donald Trump News | Top Headlines on Donald Trump |

Reuters

Discover the latest headlines on Donald Trump, including

coverage of his second presidency, trade and tariff policies,

legal developments and more.

Chart of the day

Trump said on Wednesday that the United States would impose a

tariff of about 100% on imports of semiconductors but offered up

a big exemption - it will not apply to companies that are

manufacturing in the U.S. or have committed to do so. South

Korea's top trade envoy said major chipmakers Samsung

Electronics and SK Hynix would not be subject to the 100%

levies.

Taiwanese chip contract manufacturer TSMC was expected to be

relatively unscathed as it has U.S. factories, so key customers

such as Nvidia are unlikely to face increased tariff costs for

U.S-made chips. Malaysia's trade minister Tengku Zafrul Aziz

warned parliament his country would risk losing a major market

in the United States.

Today's events to watch

* Bank of England policy decision and monetary policy report

(7:00 AM EDT), with press conference from BoE Governor Andrew

Bailey

* U.S. weekly jobless claims (8:30 AM EDT), Q2 labor costs

and productivity, June consumer credit (3:00 AM EDT); Mexico

July inflation (8:00 AM EDT)

* Mexico central bank policy decision (3:00 PM EDT)

* Atlanta Federal Reserve President Raphael Bostic speaks

* U.S. corporate earnings: Eli Lilly, Gilead, Zimmer Biomet,

Warner Bros Discovery, Expedia, ConocoPhillips, Sempra,

Constellation Energy, Alliant Energy, Evergy, Consolidated

Edison, Motorola Solutions, Microchip Technology, GenDigital,

Ralph Lauren, Monster Beverages, Block, GoDaddy, Live Nation,

Wynn Resorts, Trade Desk, EOG,

* U.S. Treasury auctions $25 billion of 30-year bonds

Want to receive the Morning Bid in your inbox every weekday

morning? Sign up for the newsletter

here

.

Reuters website

LinkedIn

X.

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.