Weekly Market Insights – 3 August 2026

Weekly Market Insights – 3 August

A week shaped by cautious central bank decisions and resilient corporate earnings saw investors navigate a mixed macroeconomic backdrop. The Federal Reserve, Bank of England and Bank of Japan all left policy rates unchanged, while softer US core inflation and slowing economic growth contrasted with firmer Eurozone activity and slightly higher inflation. In China, business activity slipped back into contraction territory despite continued policy support, while optimism surrounding renewed US–Iran negotiations helped reduce immediate geopolitical risks.

Markets advanced despite elevated volatility, supported by stronger-than-expected earnings from major technology companies and improving sentiment toward AI leaders. US and European equities posted modest gains, while Asian markets delivered mixed performances amid earthquake-related uncertainty in Japan and continued AI-driven volatility across the region. Bond markets remained under pressure as long-term Treasury yields climbed to multi-year highs, while corporate credit modestly outperformed sovereign debt. Oil and precious metals weakened on renewed diplomatic hopes, the US dollar recorded its sharpest weekly decline in over three months, and cryptocurrency markets finished the week mixed.