Federal Reserve chairman Kevin Warsh said dollar liquidity swap line capacity is part of monetary policy.

Foreign investors have withdrawn roughly $110bn from the South Korean equity market YTD, a record, largely to avoid allocation imbalance after the market’s rapid rally, leaving domestic retail investors to absorb most buying. After net buying 42.4 trn KRW in June, retail investors have net purchased 13.2 trn KRW of KOSPI stocks so far this month. Margin financing for KOSPI stocks was 280 trn KRW as of July 14, down from a record 298 trn KRW on June 24. Lyon Securities chief equity strategist Alexander Redman said Korea remains the firm’s largest overweight but the firm has begun trimming positions; he flagged concern the market is increasingly retail-driven with heavy use of margin.

Chongqing issued its first red high-temperature warning of the year this morning, forecasting that between 13:00 and 20:00 today daily maximum temperatures will reach 40–42°C across 31 districts and counties — including Yuzhong, Shapingba, Dadukou, Jiulongpo, Nan'an, Liangjiang New Area and the High-tech Zone — and 37–40°C in seven districts including Wansheng Economic Development Zone, Nanchuan, Wulong, Chengkou, Shizhu, Qianjiang and Xiushan.