This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Rally fades
Asia-Pacific markets were mixed after U.S. Federal Reserve Chairman Jerome Powell stuck to his hawkish forecast for more rate hikes this year. This was after U.S. stocks fell on Wednesday for the third-straight session as investors took a breather from last week's rally. Hong Kong, China and Taiwan markets were closed for the Dragon Boat Festival public holiday.
More hikes
Fed Chair Jerome Powell reaffirmed his belief that more rate hikes are likely until more progress is made on bringing down inflation. Speaking to the House Financial Services Committee, he said last week's pause was just a brief respite.
Chip plans
Intel has plans to take on the might of chip titan Taiwan Semiconductor Manufacturing Company, updating investors on its turnaround plan on Wednesday. But its stock dropped 6% during the session as some analysts worried about Intel's gross margins.
ETF excitement
Bitcoin traders were getting excited about the prospects of a spot bitcoin ETF on Wednesday. The cryptocurrency rose to its highest price since April with bullishness about BlackRock and others getting involved in digital assets.
EV subsidies
China has extended tax breaks for EV purchases until the end of 2027, but subsidies for electric cars aren't enough to boost growth as the economy slows. Tax breaks don't resolve the fundamental reason why people in China haven't bought more electric cars: mileage concerns.
[PRO] Expected glut
Cathodes, a part of an EV battery that attracts positive charge, are increasingly being seen as a commodity and we might be about to see some serious oversupply, according to Goldman Sachs. The investment bank has named the winners and losers of the expected glut.
The bottom line
The war on inflation is not over yet.
Speaking a week after the Federal Open Market Committee decided for the first time in more than a year to not push rates higher, Fed Chair Jerome Powell indicated that the move likely was just a brief respite rather than an indication that the central bank is done hiking.
Powell's comments partly accounted for a third-straight daily loss for the S&P 500.
Fed officials indicated there could be two more quarter-percentage point moves on the horizon this year.
And 2% inflation remains the magical target. In the U.S., that is still elusive with inflation at 4% in May and core inflation at 5.3%.
But over in Japan, central bankers are wary that inflation will not stay above their 2% goal — even though that has been the case for well over a year now. They are eager to get the timing of any definitive monetary tightening right, but that won't be easy after decades of chronic deflation in the world's third-largest economy.
Everybody's fighting inflation, it seems; yet everybody's fighting their own unique war.
