China is reportedly considering allowing yuan-backed stablecoins to boost global adoption of its currency as part of a plan that could be approved this month. The plan would be a significant shift from China's previous ban on cryptocurrency trading and mining.

Australian stocks have surged this week, with the S&P/ASX 200 index rising nearly 1% to surpass the 9,000 mark for the first time. The gains were primarily driven by the consumer discretionary, financial, and real estate sectors.

The Bank of Japan is expected to raise its key interest rate by at least 25 basis points in the fourth quarter, with October being the most likely month, according to a Reuters poll. The majority of economists do not expect a change at the next policy meeting in September, but 63% anticipate a hike to 0.75% in the next quarter.

U.S. tech stocks have experienced a notable pullback this week, with the S&P 500 tech sector falling about 2.5% and the tech-heavy Nasdaq Composite down roughly 2%. This decline follows an extended rally that saw tech shares surge over 50% since April, outpacing the broader S&P 500. Investors are locking in profits and adjusting portfolios amid concerns over stretched valuations, especially ahead of Federal Reserve chair Jerome Powell's speech at Jackson Hole and a seasonal downturn begins.

The Bank of England is now widely expected to keep interest rates at 4% for the foreseeable future, with financial markets scaling back expectations of further cuts following higher-than-anticipated July inflation figures. Investors no longer see a reduction likely this year, and economists suggest borrowers should prepare for rates to remain steady into next spring, as inflation persists above target.

JPMorgan Chase anticipates a revival in Mexico's equity capital markets next year as trade uncertainty with the US diminishes. JPMorgan's Felipe Garcia Moreno notes that international investors are interested in Mexican stocks, but companies need higher valuations to sell stakes.

A Coalition Greenwich report reveals that 68% of buy-side traders prioritize customer service and desk coverage when selecting brokers for high-touch trades, despite the rise of electronic execution. The report also highlights challenges such as execution quality, commission management, and operational issues, emphasizing the need for brokers to build strong relationships to gain a competitive edge.

US Securities and Exchange Commission Chair Paul Atkins has introduced a significant policy shift at the Wyoming Blockchain Symposium, arguing that only a small number of crypto tokens should be categorized as securities. Atkins emphasized the importance of examining the context and structure of digital assets rather than broadly labeling them securities.

Issuance of renminbi-denominated debt outside mainland China is on pace for a record this year, driven by low Chinese interest rates and a shift away from dollar assets. Offshore renminbi bonds, known as "dim sum" bonds, have reached 475 billion yuan, or about $66.3 billion, so far this year, with significant issuers including Temasek, Chubb and Nestle.

The one-month Hong Kong Interbank Offered Rate (Hibor) has surged more than threefold to above 2.8% in just five sessions, marking a dramatic increase in local funding costs. This spike, fueled by cash-draining actions from the city's monetary authority, pushes Hibor above its mainland counterpart for the first time in months and raises concerns about diminishing the effects of previously low interest rates on economic growth.

AFME's European Compliance and Legal Conference brings together 350+ senior professionals from compliance, legal, regulatory, and risk functions, along with policymakers, law firms, and tech providers. The event features keynotes, expert panels, and networking, offering insights into the evolving regulatory landscape. Attendees can earn CPD hours and IJE credits while exploring topics such as AML, enforcement, market abuse, governance, ESG, compliance tech, and more. Join industry leaders to discuss critical challenges, share best practices, and shape the future of compliance and legal frameworks in Europe. This is a must-attend event for staying ahead in a complex regulatory environment.