US Yen Intervention Sparks Global Market Ripples as Amazon Surpasses $3 Trillion
The US intervention to bolster the yen may have had more far-reaching consequences than initially thought. Instead of selling dollars to prop up the Japanese currency, Washington reportedly sold euros to fund the operation, thereby weakening the greenback against the euro.
This move may have been a deliberate attempt by Washington to avoid destabilizing the sensitive Treasury markets. According to industry veterans, one of the biggest concerns was avoiding a scenario where Japan would need to dump large quantities of Treasurys to finance unilateral intervention.
Amazon's market cap surpassed $3 trillion for the first time on Monday, following its better-than-expected earnings report last week. However, this may be distorted by the company's stake in AI companies like OpenAI and Anthropic.
Other notable earnings reports came from HSBC, which exceeded analysts' estimates with a second-quarter pre-tax profit of $10.1 billion, and Saudi Aramco, which reported a jump in second-quarter profit beating expectations.