Weekly Market Insights – 10 August 2026

Weekly Market Insights – 10 August

A week marked by a softer US labor market and improving activity across Europe saw investors reassess the outlook for monetary policy. US payrolls surprised sharply to the downside, while falling labor force participation and subdued wage growth pointed to a cooling jobs market despite resilient business activity. In Europe, PMIs returned to expansion as inflationary pressures moderated, while the UK also recorded a modest rebound. China remained the main source of macroeconomic weakness, with manufacturing and services activity deteriorating amid subdued domestic demand. Meanwhile, progress toward reopening the Strait of Hormuz helped ease near-term geopolitical concerns, although trade tensions between the US and China remained elevated.

Financial markets responded positively, with global equities advancing to new highs as strong corporate earnings, renewed enthusiasm around AI and improving geopolitical sentiment supported risk appetite. Sovereign bond yields declined as weaker US employment data reduced expectations of further Fed tightening, while corporate credit delivered positive returns. Oil prices fell sharply on prospects of increased shipping through the Strait of Hormuz, while gold and silver rallied as rate expectations softened. The US dollar weakened modestly, and cryptocurrency markets delivered mixed returns, with Bitcoin and Ethereum advancing while Ripple declined.