Weekly Market Insights – 31 August 2026

Weekly Market Insights – 31 August

Persistent inflation and a hawkish Federal Reserve remained central to the market narrative, with Fed Chair K. Warsh signalling that further rate hikes remain possible while US price pressures stayed elevated. Economic sentiment improved across the euro area, although inflation remained uneven, while Japan continued to face persistent price pressures and China’s recovery remained uneven. Geopolitical developments around the Strait of Hormuz, Ukraine and US trade policy added further uncertainty.

Against this backdrop, global equities edged higher, supported by exceptionally strong technology and AI-related earnings. Sovereign bond yields rose, particularly at the short end of the US curve, as markets reassessed the path of monetary policy, while corporate credit remained mixed. Oil prices declined on renewed US-Iran discussions, precious metals retraced, the US dollar strengthened, and cryptocurrencies ended the week lower.