Welcome to today’s European Briefing, where we round up the key economic and political developments shaping markets and geopolitical landscapes.

RBA Holds Rates Steady at 4.35%

The Reserve Bank of Australia (RBA) decided to keep its interest rates unchanged at 4.35%. This decision aligns with market expectations, reflecting the central bank’s cautious approach as it balances inflation concerns with economic stability. The Australian economy continues to navigate the challenges posed by global economic uncertainties and domestic pressures.

Japan Sees Real Wage Growth for the First Time in 27 Months

In a positive turn for the Japanese economy, real wages rose in June, marking the first increase in 27 months. This development signals a potential boost to consumer spending and economic recovery, as higher wages could help offset the impact of inflation and support household income.

US President Biden Convenes Security Team Amid Rising Tensions with Iran

In response to escalating concerns over potential threats from Iran, President Joe Biden has convened his security team. The administration is closely monitoring the situation, as fears of an imminent attack grow. This heightened alert underscores the complex geopolitical tensions in the Middle East and their implications for global security.

Fed’s Daly Expresses Confidence in Inflation’s Path Toward 2%

San Francisco Federal Reserve President Mary Daly has expressed increased confidence that inflation is on track to return to the Fed’s 2% target. This outlook could influence future monetary policy decisions, as the Fed weighs the need for additional rate adjustments to maintain economic stability.

UK Chancellor Reeves Open to Increased Borrowing

UK Chancellor of the Exchequer Rachel Reeves has indicated a willingness to consider higher borrowing. This approach aims to support economic growth and address public spending needs. The potential for increased fiscal stimulus comes amid a challenging economic landscape, as the UK grapples with inflation and other fiscal pressures.

Japan Pledges $2 Billion in Trade Support for Asia Projects

In a bid to bolster regional economic ties, Japan has committed $2 billion in trade support for projects across Asia. This initiative is part of Japan’s broader strategy to enhance its economic influence in the region and support sustainable development in neighboring countries.

Kiwibank Suggests RBNZ Should Cut Rates Next Week

New Zealand’s Kiwibank has recommended that the Reserve Bank of New Zealand (RBNZ) consider cutting interest rates at its next meeting. The suggestion comes as the bank seeks to stimulate economic growth amid a challenging economic environment.

Japanese Stocks Surge as Yen Weakens

Japanese stocks experienced a significant rebound, with a 10% surge, as the yen weakened against the US dollar. This market movement reflects investor optimism and the potential for improved corporate earnings due to a weaker yen, which benefits Japan’s export-driven economy.

Bitcoin Rebounds to $53K After Recent Sell-off

Bitcoin has bounced back to $53,000 following a sharp sell-off. The cryptocurrency market remains volatile, but this recovery suggests a continued appetite for digital assets despite recent price fluctuations.