Morning Bid: Stocks take a breather

Market Overview - Global share markets have shown signs of stagnation as investors reassess stretched valuations, leading to a decline in Wall Street for two consecutive days [1] - Asian stocks remained mostly stable, with Chinese bluechips rising by 0.9% due to the global AI surge [1] European Market Outlook - European markets are expected to open flat, with EUROSTOXX 50 futures showing little change, while Wall Street futures increased by 0.2% [2] - Asian shares have experienced a significant rally of 9% for the quarter, with Japan's Nikkei up 13% [2] Federal Reserve Insights - San Francisco Fed President Mary Daly indicated that while further rate cuts are necessary, the timing remains uncertain, with more Fed officials scheduled to speak [3] - The market anticipates a 92% chance of a rate cut from the Fed in October, although the total expected easing has decreased from 125 basis points to 100 basis points [2] Currency Movements - The dollar experienced a 0.6% increase against major currencies, although its short-term technical outlook remains weak [4] - The yen has faced pressure, with the Swiss franc reaching an all-time high against the yen and the euro hovering near a one-year peak [4] Upcoming Economic Data - Key U.S. economic data to be released includes weekly jobless claims and the final estimate for Q2 GDP, with a focus on the Personal Consumption Expenditures (PCE) report [5] - A significant rise in jobless claims could support the case for two additional rate cuts this year, while strong results may bolster the dollar and increase short-term yields [5]