π° Hourly Briefing | 2026-08-05 17:00 CST
SpaceX drops 10%+ pre-market on AI spending concerns; gold surges past $4,160 up 2%, geopolitical risk premium rising; Iran warns Hormuz Strait won't open even with a deal; EU allocates β¬1.4B to Ukraine from frozen Russian assets. Japan Finance Minister Kataoka makes multiple statements, cabinet approves 2-year food sales tax reduction, US Treasury Secretary pressures Japan to hike rates.
π Market Snapshot
| Asset | Latest | Change |
|---|---|---|
| Gold XAUUSD | 4160.72 | +2.05% |
| WTI Crude USOIL | 75.315 | +1.32% |
| Brent Crude | 80.0+ | +1.89% |
| CNH/USD | 6.7503 | +30 pips |
Gold intraday high at 4179.55, approaching one-month highs. US gold miners rise pre-market: Newmont (NEM) +3.5%, Gold Fields (GFI) +5.4%, Harmony Gold (HMY) +4.6%.
π₯ Key News This Hour
1. SpaceX Drops 10%+ Pre-Market β AI Spending Concerns
SpaceX fell over 10% pre-market as investors worry about surging AI expenditures. JPMorgan raised its target price from $225 to $240, and Mizuho reiterated outperform rating with $200 target, but market sentiment is clearly bearish. SpaceX’s plan to build comprehensive mobile services also dragged US telecom stocks lower. Lucid (LCID) dropped 8.2% pre-market, delaying EV launch and missing Q2 adjusted loss estimates.
2. Iran Warns Hormuz Strait Won’t Open Even With Deal
Iran’s Tasnim news agency reported that even if a deal is reached, the Strait of Hormuz won’t immediately open, and shipping transit negotiations are solely between Iran and Oman. Iranian lawmakers criticized Trump’s negotiating stance as “contradictory and unreliable.” Meanwhile, Iran and Pakistan signed a new partnership agreement targeting $10 billion in bilateral trade.
3. EU Allocates β¬1.4 Billion to Ukraine
European Commission President von der Leyen announced an additional β¬1.4 billion for Ukraine from frozen Russian asset proceeds, aimed at strengthening defense capabilities. Ukraine’s PM confirmed receipt. Russia’s Defense Ministry claimed to have struck three vessels carrying Ukrainian military cargo in the Black Sea.
4. UK Services PMI Beats Expectations, Optimism Rises
UK July services PMI final at 52.1 vs 51.8 expected; composite PMI final at 52.2 vs 52.1 expected. Survey shows new orders increased, with 12-month expectations rising to the highest level since before the Iran war in February.
5. Japan Finance Minister Kataoka’s Dense Statements
- Cabinet approved 2-year food sales tax reduction
- Framework for tax credits and cuts to be decided in September
- Emphasized no new debt issuance to cover tax shortfalls
- US Treasury Secretary Bessent expressed confidence in Japan’s policy stance and acknowledged fiscal discipline efforts
- Wants closer attention to market communication
US Treasury Secretary Bessent has been frequently urging Japan to raise rates, increasing pressure on the BoJ ahead of its September meeting.
6. Hong Kong Closes Higher, Gold and Semis Lead
Hang Seng Index closed +0.24%, Hang Seng Tech +0.97%, turnover at 278 billion HKD. Gold stocks, PCB concepts, and semiconductors led gains. MINIMAX-W +10%, China Molybdenum +9%, Hua Hong Semiconductor +5%.
π§ Assessment
Gold breaks above $4,160, up over 2% intraday, with geopolitical risk premium continuing to rise.
Iran’s tough stance on the Strait of Hormuz, combined with the EU using frozen Russian assets, means risk aversion won’t fade in the short term.
SpaceX AI spending concerns trigger 10%+ pre-market drop, potentially dragging on tech sector sentiment.
US Treasury Secretary Bessent pressures Japan to hike, increasing BoJ September meeting pressure, FX market volatility may intensify.
UK services return to growth showing European economic resilience, but Eurozone PPI data imminent, inflation path remains in focus.
WTI crude rebounds above $75, Brent above $80, geopolitical tensions supporting oil prices.
β° Upcoming Key Data
- Eurozone June PPI MoM β in ~10 minutes
- UK July Services PMI Final β released (52.1, beat)