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[Quick Facts]

1. Shares of Apple, Microsoft and other heavyweight companies dip ahead of Nasdaq 100 index rebalance.

2. Daly says a couple more rate hikes will be needed this year.

3. NATO has approved plans to defend itself against Russia, overcoming Turkish resistance.

4. Bailey vows to 'see the job through' on reducing inflation.

5. NY Fed survey: U.S. consumers' short-term inflation expectations remain modest.

[News Details]

Shares of Apple, Microsoft and other heavyweight companies dip ahead of Nasdaq 100 index rebalance

Shares of Apple, Microsoft and other heavyweight U.S. companies dipped on Monday, local time after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's "over-concentration." Apple fell 1.1% to a market capitalization of $2.967 trillion, while Alphabet and Amazon both declined more than 2%, and Microsoft and Tesla were both down more than 1%.

Nasdaq Inc said late on Friday it would conduct a "Special Rebalance" of the index "to address over-concentration in the index by redistributing the weights."

Daly says a couple more rate hikes will be needed this year

Inflation levels are falling, but still not at the 2% target level, and inflation remains our number one problem. We may need a couple more rate hikes through the course of this year to really get inflation back on track to a sustainable 2%. This is just my personal prediction and real decisions need to be made based on the data. I'm willing to change my view based on upcoming economic data.

The risks of doing too little still outweigh the risks of doing too much when it comes to curbing inflation, although the gap between the two is narrowing. We are starting to see signs of an economic slowdown. Supply and demand are better balanced.

NATO has approved plans to defend itself against Russia, overcoming Turkish resistance

NATO allies overcame a Turkish obstacle on Monday and reached an agreement on a defense plan detailing how NATO would respond to a potential attack by Russia, five diplomats said. Turkey had previously been blocking NATO's approval of what NATO calls its regional plans over the wording on geographical locations such as Cyprus.

Before that, NATO had not seen the need for a large-scale defense plan. But with the outbreak of the Russian-Ukrainian conflict, NATO now issues a warning that it must have everything in place before a conflict with an adversary like Moscow erupts. The need to fund such a fundamental shift is one of the reasons NATO alliance leaders raised NATO's military spending targets at the Vilnius meeting, setting the current target of 2% of GDP as a minimum requirement.

Bailey vows to 'see the job through' on reducing inflation

The Bank of England must "see the job through" on reducing inflation, BoE Governor Andrew Bailey said on Monday. The UK inflation is currently higher than that of any other major developed economies. We have to stay the course, to complete our task, promote inflation back to the 2% target, and provide an environment of price stability, so that the British economy can flourish, said Bailey.

Before announcing the next policy decision on August 3, BoE officials are paying particular attention to data from the labor market and service price inflation, Bailey said. The current rate of price and wage growth is not in line with the inflation target, Bailey added. The latest consumer price rose by 8.7%. Inflation is unacceptably high. We must bring inflation down to the 2% target.

NY Fed survey: U.S. consumers' short-term inflation expectations remain modest

The New York Fed's Survey of Consumer Expectations showed that in June, consumers' expectations for inflation over the next year fell to 3.83%, the lowest since April 2021, from 4.07% in May, declining for the third consecutive month. Median expectations for inflation over the next three years were essentially unchanged at 2.95%.

The median expectations for house price inflation rose to 2.93%, the highest since July 2022, from 2.64%. The average expectations for the probability of unemployment over the next 12 months rose to 12.93%, the highest since November 2021, from 10.86%.

[Focus of the Day]

UTC+8 14:00 U.K. ILO Unemployment Rate (May)

UTC+8 16:00 European Central Bank Governing Council member Villeroy delivers a speech

UTC+8 17:00 Eurozone ZEW Economic Sentiment Index (Jul)

UTC+8 21:00 St. Louis Fed President Bullard speaks

UTC+8 23:00 New York Fed President Williams speaks

UTC+8 00:00 EIA publishes its monthly short-term energy outlook report