US stocks higher as quarterly earnings continues; Fed meeting in focus
U.S. stocks edged higher Tuesday amid caution at the start of a Federal Reserve meeting and with earnings from some of the country’s biggest companies to digest.
At 10:05 ET (14:05 GMT), the Dow Jones Industrial Average rose 185 points, or 0.5%, the S&P 500 climbed 13 points, or 0.2%, and NASDAQ Composite gained 4 points, or 0.1%.
Fed meeting awaited for more rate cues
Markets are on edge with the latest two-day Fed meeting to be concluded on Wednesday.
The U.S. central bank is widely expected to keep interest rates unchanged, but after a benign June inflation report, investors will be looking for Fed Chair Jerome Powell to lay the groundwork for a September rate cut.
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US consumer confidence rises in July; inflation expectations steady
U.S. consumer confidence unexpectedly rose in July, but remained in the tight range of the past two years amid lingering worries about inflation and higher borrowing costs.
The Conference Board said on Tuesday that its consumer confidence index increased to 100.3 this month from a downwardly revised 97.8 in June. Economists polled by Reuters had forecast the index falling to 99.7 from the previously reported 100.4.
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Swiss regulator FINMA targets stablecoin issuers in new proposal
As stablecoins continue to gain traction globally, regulatory initiatives such as FINMA’s guidance are likely to influence policies in other jurisdictions.
In a move aimed at bolstering regulatory oversight and mitigating financial risks, the Swiss Financial Market Supervisory Authority (FINMA) has proposed new guidelines for stablecoin issuers. The proposal comes amid growing concerns over the potential impact of stablecoins on regulated institutions and the broader financial ecosystem.
Stablecoins — digital assets linked to the value of traditional currencies or other assets — have experienced increased adoption. However, their rapid growth has also prompted global regulatory concerns due to potential illicit activity and misuse.
In its guidance issued on July 26, FINMA emphasized that stablecoin issuers must be subject to the same Anti-Money Laundering (AML) obligations as traditional financial institutions. This includes verifying the identity of stablecoin holders and establishing the identity of beneficial owners.
In addition to AML compliance, FINMA explained how stablecoin issuers can operate without a banking license if they meet certain conditions. It claims that these conditions ensure depositors are protected, and issuers must have a bank guarantee in case of default.
While FINMA claims its measures boost depositor protection, they do not match the security of a banking license. Still, the regulator is committed to mitigating default guarantee risks and ensuring stablecoin issuers meet robust standards to safeguard customers.
The stablecoin sector has experienced exponential expansion in recent times, reaching an unprecedented market capitalization in 2023. In response, global regulators are hastening to establish guidelines for this rapidly evolving sector.
According to the “PwC Global Crypto Regulation Report 2023,” at least 25 countries, including Switzerland, had implemented stablecoin regulations or legislation by the year’s end.
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Read more: Coin Telegraph
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Malaysia sends application to Russia to join BRICS — PM
Lavrov promised that as the BRICS president Russia will help Malaysia promote its interest to the partnership with the association
TOKYO, July 28. /TASS/. Malaysia has sent an application for BRICS membership to Russia, which is currently holding BRICS presidency, Malaysian Prime Minister Anwar Ibrahim said.
“Malaysia has sent a letter of application to join the (BRICS) organization to Russia as the BRICS chairman, besides expressing openness to participate as a member country or strategic partner,” the BERNAMA news agency quoted him as saying.
Earlier on Sunday, Anwar Ibrahim met with visiting Russian Foreign Minister Sergey Lavrov. According to the Malaysian prime minister, the conversation focused on Malaysia’s application to join BRICS, which, in his words, will have a considerable potential for both sides.
Anwar and Lavrov also discussed “the current situation in Palestine, with Malaysia emphasizing the urgent need for a permanent ceasefire and rapid humanitarian aid in Gaza, as well as Palestine’s acceptance as a full member of the United Nations,” the agency said. “Regarding Ukraine, Anwar also called for dialogue and discussion as the means to resolve the conflict.”
Lavrov promised that as the BRICS president Russia will help Malaysia promote its interest to the partnership with the association.
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Read more: TASS
