296 stories from 15 sources
The week in Global Markets
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Middle East fighting and attacks on shipping pushed oil above $100, lifting bond yields, Fed hike expectations and mortgage rates while weighing on equities. A US-Iran pause then pulled crude lower and revived risk assets, but persistent demand for gold showed that the shock had not fully disappeared.
The United States moved from imposing 50% Canadian tariffs to threatening or applying new duties across roughly 60 trading partners. The broader regime raised supply-chain and import-cost risks, then faced an immediate legal challenge over presidential authority.
Investors reduced confidence in long-duration Treasuries as heavy issuance, sticky inflation, oil risk and structural rate pressures pushed long yields toward or above 5%. Markets increasingly priced a Fed hike, bringing higher borrowing costs and weakening the stock-bond hedge.
AI-linked equities shifted from unquestioned leadership toward a volatile reset as spending pressured free cash flow, credit spreads widened and mega-cap valuations came under strain. Memory stocks still surged, underscoring how much market concentration remained tied to the AI buildout.
The yen fell to its weakest level in decades, prompting Tokyo to signal possible action. At the same time, stronger long-end JGB demand and discussion of rates near 1% raised the prospect that Japanese investors could bring foreign assets home and lift global yields.
State-linked buying initially supported Chinese equities during a technology-led selloff, but falling turnover later showed weaker conviction. Slowing industrial-profit growth added pressure on Beijing to support demand rather than rely on temporary commodity effects.
Foreign demand for Indian bonds and equities weakened as the rupee faced pressure and higher crude prices revived expectations for an October rate hike. Retail investors then sold even as foreign flows returned, leaving the rally more exposed to global rates and currency moves.
Black Sea tensions and worsening crop prospects drove wheat to a two-year high and extended its July advance. The renewed supply threat connected geopolitics and weather to a broader food-inflation risk.
Day’s Recap