Weekly Market Insights – 27 July 2026

A week marked by resilient economic data and persistent geopolitical tensions reinforced expectations that interest rates may remain higher for longer. In the United States, stronger business activity, record-low jobless claims and resilient labour markets contrasted with ongoing weakness in housing, while the ECB maintained its policy rate and signalled September as the next key decision point. Elsewhere, encouraging inflation and activity data emerged from the UK, Japan strengthened its long-term investment strategy, and China continued to face a widening gap between export-driven growth and subdued domestic demand.

Markets remained cautious as strong corporate earnings were overshadowed by renewed concerns over AI investment profitability and escalating geopolitical risks. Global equities finished mixed, with weakness in US technology stocks offset by stronger performances in Japan and Hong Kong. Sovereign bond yields moved higher as inflation fears resurfaced and expectations of further central bank tightening increased, weighing on corporate credit. Meanwhile, oil and precious metals rallied on renewed Middle East tensions, the US dollar strengthened as investors sought safe-haven assets, and cryptocurrency markets posted modest gains across the major digital assets.