Weekly Market Insights – 24 August 2026

Weekly Market Insights – 24 August

Economic activity remained resilient in the US and euro area, although inflationary pressures and elevated interest rates continued to weigh on the outlook, while Japan and China showed more mixed momentum. Geopolitical tensions escalated in the Middle East, alongside renewed trade frictions between the US and Canada, while the Fed’s cautious stance remained a key focus for markets.

Equities retreated from record highs as geopolitical risks and the Fed’s hawkish tone weighed on sentiment, with US technology stocks under pressure and Asian markets mixed. Sovereign bond yields climbed to multi-decade highs amid persistent inflation, supply and real-yield concerns, while oil and precious metals rallied. The US dollar weakened, while cryptocurrencies posted a sharp rebound.