Let's review the latest key developments across global markets.

Major cryptocurrencies are extending their upward momentum. As of the latest trading, the Bitcoin Dollar Index has risen 0.2%, Ethereum is up 0.18%, and Ripple has gained 0.74%. Market analysts attribute this rally primarily to cooling expectations for Federal Reserve interest rate hikes. Looking ahead, if US inflation data continues to weaken, fueling expectations for monetary easing, the rebound in traditional assets could persist. Conversely, if inflation remains stubborn, the market may face a short-term correction. Data from CoinGlass shows that over the past 24 hours, nearly 90,000 traders in the crypto space have been liquidated, with total liquidation amounts reaching $168 million, the majority of which were short positions.

US Consumer Sentiment Drops Significantly

Preliminary survey data released by the University of Michigan on the 14th shows that the US consumer sentiment index for August came in at 51, down notably from 55.2 in July. The survey further indicates that the current economic conditions index for August was 51.8, sharply lower than July's 54.8 and 61.7 from the same period last year. The consumer expectations index also fell to 50.6, down from 55.4 in July and 55.9 a year earlier. Meanwhile, consumers' one-year inflation expectations edged up to 4.3% from 4.2% in July, while long-term inflation expectations remained at 3.3% for the third consecutive month. The survey notes that the weakening in consumer sentiment in early August was widespread across different demographics, with significant declines among older and lower-income consumers, who are particularly vulnerable to inflation eroding their purchasing power. After disruptions to navigation through the Strait of Hormuz pushed gasoline prices higher, the US consumer sentiment index fell to 44.8 in May, marking a record low for that monthly data point. The index had recovered somewhat over the following two months. The latest data points to signs of cooling in US consumption. In response, markets have dialed back expectations for further Fed rate hikes, repricing for a scenario of economic slowdown and no additional tightening. According to the CME FedWatch tool, the probability of the Fed holding rates steady in September is 67.5%, while the chance of a 25-basis-point hike is 32.5%. For October, the probability of rates remaining unchanged is 53.3%, with a 39.8% chance of a 25-basis-point hike and a 6.8% chance of a 50-basis-point increase.

UAE Reports Oil Tanker Attack Near Hormuz Strait

Citing reports from UAE sources on the 15th, the Abu Dhabi National Oil Company (ADNOC) stated that one of its vessels was attacked while navigating through the Strait of Hormuz on the evening of the 14th. The incident resulted in no casualties. ADNOC is the state-owned oil and gas company of the UAE. The UAE has recently reported multiple attacks on its vessels passing through the Strait of Hormuz. In an earlier statement, the UAE Foreign Ministry said that two ADNOC oil tankers were attacked by Iranian forces while transiting the Strait of Hormuz on the night of the 13th.