CNBC Daily Open: Rate cuts need to start before inflation’s 2%

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Second-day drop
On Wednesday, the S&P 500 and Nasdaq Composite fell for a second day, but the Dow Jones Industrial Average managed to buck the trend with a slight rise. Likewise, Asia-Pacific markets mostly fell Thursday. Japan's Nikkei 225 lost around 1.1% and South Korea's Kospi index retreated 0.13%.

A jolting number
Job openings in the U.S. fell to 7.67 million in July, 237,000 fewer than June's number, which was revised downwards. It's not only lower than the expected 8.1 million, it's also the lowest level since January 2021. Even though job data look weak, there are still around 1.1 open jobs per available worker.

Ready to lower rates
A 2% inflation reading has been the U.S. Federal Reserve's target,  but it seems the central bank is now turning its attention to the jobs market. Atlanta Federal Reserve President Raphael Bostic – who is known to be hawkish, that is, in favor of higher rates – said he's ready to lower rates even though inflation's still slightly higher than 2%.

Chinese companies' advantage
With the Chinese economy still weak, domestic companies are looking to expand overseas for growth. And thanks to the massive Chinese diaspora around the world, those companies have a "disproportionate opportunity" compared with other Asian ones that expanded earlier, according to Bain and Company.

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