Morning Bid: Ailing dollar gets toehold as Fed awaited

Market Overview - Hong Kong shares reached their highest level in four years, driven by expectations of a Federal Reserve rate cut, a weakening dollar, and strong local technology stocks [1] - U.S. stocks stalled with futures flat ahead of the Fed's decision, as August retail sales growth of 5% tempered expectations for a larger rate cut [2] - The euro surged to a four-year high against the dollar, while the offshore yuan hit its strongest level of the year [1] U.S.-China Relations - President Trump announced an agreement to keep TikTok operating in the U.S., which has positively influenced market sentiment [4] - The U.S. and Britain agreed on a technology pact to enhance collaboration in AI, quantum computing, and civil nuclear energy, with U.S. firms pledging £31 billion ($42 billion) in investments in the UK [5] Federal Reserve and Economic Indicators - The Federal Reserve is expected to implement its first interest rate cut of 2025, with market participants eager for signals on future cuts [3] - Current economic indicators, including robust GDP growth and retail sales, suggest that the Fed's decision to ease policy may not be driven by immediate economic weakness [8] Corporate Disclosures and Regulatory Environment - The Trump administration is pushing to eliminate quarterly corporate disclosures, which may gain traction due to increased control over the SEC's agenda [6] - Concerns have been raised regarding the Fed's performance in managing inflation, with some industry leaders supporting the administration's critique [6] Investment Trends - The trend of hedging U.S. equity exposure, initially linked to 'de-dollarization', is losing credibility as U.S. stocks continue to reach new highs [7]