Daily Briefing — 2026-08-19

Key themes: Markets open the session with a defensive tone. Asia saw sharp losses—South Korea’s Kospi plunged 5.7%—and Europe is set for a weak start as oil prices climb further and AI-related sentiment sours. Bank of America’s Michael Raedler warns that “there are many ways this can go wrong” for AI, while the bond selloff slows. In emerging markets, Bank Indonesia held its policy rate at 5.75%, a sign of caution amid Middle East tensions.

Regulatory focus: The SEC unveiled a proposed “Regulation Crypto Assets” framework, including $5 million and $75 million exemption paths for token offerings—what Chair Paul Atkins called the agency’s “most historic step yet” on crypto. A White House crypto summit is planned ahead of September’s CLARITY Act vote. Also worth watching: exchange stablecoin reserves have dropped 20%, and FASB has set three tests for stablecoins to qualify as cash. These developments could shape liquidity and issuance conditions.

Data to watch: Today’s high-impact release is Canadian CPI, with headline m/m, median, trimmed, and common measures due. China publishes a slate of low-impact figures—retail sales, industrial production, fixed asset investment, unemployment, new home prices—plus an NBS press conference. Japan rounds out the calendar with preliminary GDP and activity data. For traders, the key is how inflation and growth signals influence central bank expectations and risk appetite.