China's economy is running on fumes, and its leaders are scrambling for a quick fix. The Politburo, China's top decision-making body, is now focusing on consumers as the key to hitting growth targets by fattening wallets and beefing up social safety nets to get people spending again. This shift comes as the world's second-largest economy faces a nasty combo of missed growth forecasts and deflation fears, which discourage spending. While keeping their cards close to their chests, officials promise a "batch of incremental policy steps" to jumpstart the economy. Meanwhile, in the financial arena, China's market watchdog is sharpening its teeth, with enforcement chief Li Ming likely to be promoted to vice chairman, known for being tough on market manipulation and insider trading. This move shows Beijing's determination to keep a tighter leash on its massive $5.1 trillion stock market.

EQUITY

The S&P 500 and Nasdaq started the week in positive territory, cheered by tech stocks, especially Tesla, that rose 5.6% after Morgan Stanley called it their top car company pick. Investors are waiting for big tech earnings from the likes of Microsoft, Apple, Amazon, and Meta. The Russell 2000 fell on Monday after rising for three consecutive weeks with a growing rate cut bet for September. Jobs reports and FOMC are closely monitored to prepare for September meetings.

GOLD

Gold prices started the week with a leg up and are expected to stay strong for the rest of the year, mainly because the U.S. lowers future interest rates and Western investors are getting interested again. In the second quarter, gold demand hit record levels, mostly due to central banks buying gold and over-the-counter purchases. The World Gold Council reports that demand rose 4% compared to last year, reaching 1,258 metric tonnes. This was the best second quarter since 2000. However, there are counter-risks, such as less money in the AI boom bringing more capital into physical gold mining activities.

OIL
Oil prices continued to drop from last week, with Brent crude falling below $80 per barrel. China's lower appetite for oil is among the main instigators, as China's oil imports and usage have gone down in the first half of the year. However, there's hope that China's demand might improve as their factories start running more. In Venezuela, Nicolas Maduro's election win might lead to stricter U.S. sanctions, which could reduce oil supply globally. If oil prices stay low, OPEC+ might step in and issue new plans to support oil prices.

CURRENCY

The Japanese yen was weaker against the dollar on Tuesday, as traders weren't sure if the Bank of Japan would raise interest rates this week. Other major currencies stayed steady as everyone waited for the central bank's meeting. Right now, there's about a 50% chance that Japan will raise rates by a small amount, which will attract carry trade from USD to yen. Some experts think Japan's economy might not be ready for a rate hike yet. The British pound has also stayed flat in the face of uncertainty about whether the BoE will cut or not.