The Week in Markets: Two milestones in the US stock market, and one in China’s

Recent comments from Federal Reserve Chairman Powell suggest potential interest rate cuts, beginning in September. Meanwhile, the S&P 500 index has returned 30% since its April low, and the Dow Jones Industrials Average made a new high for the first time this year. The Shanghai Composite index has conclusively broken multi-year resistance. On the surface it’s driven by sentiment only, but China’s 10-year government bond yield bottomed in January and has been building a base since then. Government bond yields are often lead indicators. Additionally, a survey also shows a shift in consumer opinions, from very pessimistic to less pessimistic. In other developments, Singapore has replaced Thailand as Southeast Asia’s largest economy.