Morning Economic Report 8-15-25

Economy Update

The Nikkei takes another run as Japan’s GDP beats expectation both QoQ and YoY. However, bourses are mixed in the East as China data dampens spirits. House Price Index down 2.8% which was not unexpected but Fixed Asset Investments, Industrial Production and Retail Sales missed badly and at 3.7%, the latter is the slowest since December 2024. Despite the much faster US PPI MoM, YoY and Core, which pulled down the pricing of future interest rate cuts and rallied the USD, US bourses remain firm. US docket includes Retail Sales, Industrial Production, Michigan sentiment and Atlanta FED GDP. DAX +0.28%, CAC +0.63%, FTSE -0.50%, Euro STOXX600 +0.29%. The USD starts to give back gains after it recovered sharply due to hot US PPI and a cooling of ideas of FED cuts. DXY 97.85. Gold $3340. BTC $119,030