Nvidia's strong earnings lifted the Nasdaq and S&P 500, alleviating concerns about an AI demand slowdown and boosting risk sentiment.
However, the ongoing Iran war and hawkish signals from Federal Reserve officials continued to exert upward pressure on bond yields.
While the ECB hinted at further rate hikes, Europe faced fiscal instability, particularly in France, creating a mixed global economic outlook.
Investors are now keenly awaiting Fed Chair Warsh's Jackson Hole speech for further clues on monetary policy direction.
Brazil's current account deficit widened significantly, exceeding forecasts and putting pressure on the real.
Global Markets
Detail
S&P 500
Closed at 7,730.99 on 8/27
+0.72%
Nasdaq
Closed at 26,541.34 on 8/27
+1.57%
STOXX 600
Closed at 651.86 on 8/27
-0.69%
Nikkei 225
Closed at 66,131.76 on 8/27
-0.20%
CSI 300
Closed at 4,630.28 on 8/27
+0.86%
KOSPI
Closed at 6,912.37 on 8/27
+1.53%
Hang Seng
Closed at 25,565.74 on 8/27
-0.34%
Dollar Index (DXY)
Closed on 8/27
99.14
USD/JPY
Closed at 159.41 on 8/28
+0.01%
EUR/USD
Closed at 1.17 on 8/28
-0.01%
USD/KRW
Closed at 1,380.60 on 8/27
-0.34%
USD/CNY
Closed at 6.72 on 8/27
-0.04%
US 10-year Yield
Closed at 4.676% on 8/27
+2.7bp
US 2-year Yield
Closed at 4.234% on 8/27
+2.5bp
Japan 10-year Yield
Closed at 2.892% on 8/27
+0.7bp
Germany 10-year Yield
Closed at 3.267% on 8/27
+2.9bp
Korea 10-year Yield
Closed at 4.252% on 8/27
-2.0bp
US HY Spread
Closed at 267bp on 8/26
-3.0bp
WTI
Closed at 83.53 on 8/27
+1.58%
Gold
Closed at 4,588.97 on 8/27
-0.19%
Copper
Closed at 6.59 on 8/27
-0.15%
VIX
Closed at 14.50 on 8/27
-4.73%
Canada Q2 Current Account Swings to Surplus
Canada's Q2 current account recorded a +C$8.84 billion surplus, a significant improvement from Q1's -C$8.31 billion deficit.
+C$8.84B
Israel Election Could Swing Shekel by 3%
JPMorgan analysis suggests political uncertainty could cause a ±3% fluctuation in the Israeli shekel (ILS).
±3% Volatility
Fed Officials Divided on Inflation Path Ahead of Warsh Speech
Fed's Warsh, scheduled to speak at Jackson Hole, maintains an ambiguous stance on whether inflation is a problem.
Mixed Views
United States
Iran War Enters 6th Month, Deepens Stalemate6-Month Stalemate
The Iran war has entered its sixth month with no clear resolution, leading to a prolonged stalemate.
Shipping through the Strait of Hormuz faces significant disruptions, and Iran shows no signs of surrender.
President Trump shifted to an economic sanctions strategy, warning countries trading with Iran of penalties.
July PCE Exceeds Fed Target for 65th MonthPCE 3.7%
July PCE inflation reached 3.7%, exceeding the Fed's target for the 65th consecutive month, intensifying debate between rate hike advocates and disinflation proponents.
Key contributors to inflation included a 5% rise in auto prices, over 3.5% in housing and utilities, and double-digit increases in recreational goods.
Cleveland Fed's Hammack projected 3% inflation by year-end and 2.5% next year, stressing the need for rate hikes.
Boston Fed's Collins noted portfolio management fees distorted data but saw positive signs in sub-components, expecting gradual disinflation.
Strong Nvidia (NVDA) earnings forecasts, reaffirming AI demand, lifted the Nasdaq and S&P 500.
Salesforce (CRM) also surged after raising its annual outlook, adding to the positive sentiment in tech stocks.
Treasury yields saw a slight increase, and the dollar was mixed, with markets pricing a 35% chance of a September hike and 75% by December.
Fed officials like Hammack and Schmid (hawkish) and Goolsbee (tariffs concern) remain divided, making Warsh's Jackson Hole speech crucial.
Pentagon Signals NATO Allies to Bolster DefenseEuropean Defense
The Pentagon's policy chief informed NATO European allies that the U.S. expects them to strengthen their own defense capabilities.
A review of U.S. military deployments in Europe over the past six months is underway.
Allies were surveyed on defense spending, strategy, procurement, and support for U.S. policies to encourage a European-led defense structure.
Trump Downplays Putin's Threat to NATOPutin No Attack
President Trump stated that Vladimir Putin would not attack NATO territory.
He also downplayed reports of the CIA director's visit to Moscow to warn Russian officials.
Trump to Meet Refiners on Rising Gas PricesGas Price Talks
President Trump plans to meet with executives from refineries and gasoline retailers next week.
The meeting aims to discuss ways to alleviate rising gasoline prices ahead of the November midterm elections.
This political move seeks to ease oil price pressure, which is crucial for Republican seat gains.
Trump Considers Expanding Small Refinery ExemptionsSRE Expansion
The administration is considering expanding small refinery exemptions (SREs) from approximately 1.4 billion gallons to 1.8 billion gallons.
This move faces strong opposition from the agriculture and biofuel industries.
An Iowa Republican senator criticized the proposal as a 'special privilege for large refiners'.
NVIDIA (NVDA)+8.74%
Q2 revenue of $96.2 billion and adjusted EPS of $2.22 beat consensus, with data center revenue surging 117% year-over-year to $89 billion.
Q3 revenue guidance of $108 billion also exceeded expectations, though gross margin guidance of 74% (±50bp) was slightly below Q2's 75% due to rising memory and component costs.
The company disclosed GPU supply deals with AWS (2 million units for 2027-2028) and the U.S. government (100,000 units for data centers); Reuters reported unconfirmed acquisition talks for Hugging Face at $12.9-13 billion.
Marvell Technology (MRVL)-1.49%
Q2 revenue of $2.74 billion and adjusted EPS of $0.94 surpassed expectations.
The CEO raised FY2027 revenue guidance to $12 billion (+45% YoY) and FY2028 to $18 billion (+50% YoY), projecting 60% growth for the data center business this fiscal year.
However, Q3 gross margin guidance of 52.9-53.9% was lower than Q2's 58.9%, impacting stock performance.
SanDisk (SNDK)-0.96%
Announced a joint investment of over $31 billion (5 trillion yen) with Kioxia in Japan through 2032 to expand AI memory production capacity.
This includes building a new memory chip facility at Kioxia's Kitakami plant, with 1.8 trillion yen ($11.3 billion) allocated for this specific project.
The investment is contingent on support from the Japanese government.
IREN (IREN)+2.40%
FY26 revenue forecast of $707 million fell short of the $740.3 million consensus, leading to a net loss primarily due to non-cash impairment charges from past Bitcoin mining equipment write-offs.
While AI cloud business revenue grew, it did not meet overall company expectations.
The company is expanding its AI cloud platform through multi-year contracts and M&A, securing approximately $4 billion in annual recurring revenue for 2026, with negotiations ongoing for 2027 capacity.
Apple (AAPL)
Confirmed a new product launch event for September 9.
Lam Research (LRCX)+1.82%
Board approved an increase in quarterly dividend from $0.26 to $0.33 per share, a 26.9% raise.
Salesforce (CRM)+22.58%
The information technology company saw a significant surge.
CrowdStrike Holdings (CRWD)+20.50%
The cybersecurity firm experienced substantial gains.
Veeva Systems (VEEV)+15.20%
The healthcare technology company climbed notably.
Synopsys (SNPS)+13.39%
The chip design software company posted strong growth.
Palo Alto Networks (PANW)+12.83%
The cybersecurity leader achieved robust returns.
ServiceNow (NOW)+10.04%
The enterprise workflow software firm showed a strong increase.
Fortinet (FTNT)+9.67%
Another cybersecurity company with significant gains.
Datadog (DDOG)+6.70%
The cloud monitoring service provider saw a solid rise.
Autodesk (ADSK)+6.21%
The design software company experienced a good increase.
DigitalOcean Holdings (DOCN)+5.82%
Truist Securities initiated coverage with a Buy rating and a $175 price target.
Applied Materials (AMAT)+0.54%
Akash Palkhiwala was appointed to the Board of Directors.
Thermo Fisher Scientific (TMO)-0.48%
Launched a new electron detector, EMPAD G2, to advance materials research.
Meta Platforms (META)-0.87%
Reached an $18 billion settlement over 10 years with a coalition of U.S. states regarding youth addiction and mental health harms from social media.
The agreement mandates features like screen time management and parental controls on Instagram and Facebook.
The EU Commission continues discussions on preliminary findings of DSA violations related to addictive design, while Poland officially requested a €250 million fine from the EU for Meta's alleged failure to address fraud and false advertising.
Alphabet (GOOGL)-0.39%
Released Gemini Omni 1.1 Flash, an AI model for developers with enhanced video capabilities.
The company also settled a class-action lawsuit with UK app developers for £260 million (approximately $353 million) regarding alleged monopolistic practices and 30% Play Store fees.
Google Cloud and Clearlake Capital formed a strategic partnership to provide AI enterprise solutions to Clearlake's portfolio companies.
Moderna (MRNA)-4.60%
Announced a plan for a $2 billion private placement of convertible senior notes, causing a pre-market stock decline of 5.6% due to concerns over capital structure dilution.
To offset dilution, Moderna purchased a hedge overlay with a minimum 150% premium cap.
The FDA approved updated formulations for Spikevax and mRESVIA for the 2026-2027 respiratory season.
Amgen (AMGN)
Tezspire met all primary and secondary endpoints in a Phase 3 trial for eosinophilic esophagitis.
AbbVie (ABBV)
Submitted an EMA application for Skyrizi subcutaneous induction therapy for Crohn's disease.
Abbott (ABT)-2.20%
Its next-generation stroke prevention device, Amulet 360, received European CE Mark approval, with first procedures completed in Germany and Denmark.
Johnson & Johnson (JNJ)-1.57%
Received approval from Chinese drug regulators for a new oral psoriasis drug.
Psoriasis, a chronic autoimmune disease affecting over 8.4 million patients in China, is expected to see increased market competition with J&J's entry against existing treatments like Bristol Myers' Sotyktu and AbbVie's offerings.
JPMorgan Chase (JPM)-0.64%
Led a $5 billion debt package to fund infrastructure expansion for generative AI startup Volta.
The bank is also strongly opposing proposed capital rule changes by the Federal Reserve, arguing they would result in a $13 billion loss in capital relief.
Bank of America (BAC)-1.70%
A federal judge approved a $72.5 million settlement with women who accused the bank of facilitating Jeffrey Epstein's sexual abuse.
The judge deemed the settlement provided 'meaningful' compensation and 'partial justice' to victims, dismissing claims that it forced victims to waive rights against other defendants.
Mastercard (MA)-1.13%
International sanctions eased after the U.S. removed Syria from its state sponsors of terrorism list.
Mastercard and Visa conducted their first international card transactions in Syria in over 15 years, reconnecting the country to global payment networks through cooperation with the Syrian Central Bank and QNB Group.
Visa (V)-1.10%
Enhanced its cybersecurity portfolio and launched three new advisory services (Visa Consulting & Analytics) to address cybersecurity threats in the AI era.
GE Vernova (GEV)+0.08%
Appointed Claire McDonough, former CFO of Rivian, as its new Chief Financial Officer, effective January 1, 2027.
Current CFO Ken Parks will transition to a strategic advisor role before retiring in April 2027.
Home Depot (HD)-1.86%
Expanded its 'Magic Apron' in-store customer guidance feature to enhance personalized product information and shopping assistance for individual and regional customers.
Europe
ECB Signals Further Rate Hike in SeptemberSept Hike Likely
Minutes from the ECB's July meeting revealed policymakers deemed further rate hikes essential to curb energy price increases from the Iran war.
This suggests a rate hike is anticipated at the September meeting, already priced into Eurozone bond yields.
Germany's 10-year yield reached 3.25%, near a 15-year high, reflecting this expectation.
France Faces Market Distrust Amid Debt, Election UncertaintyCAC 40 -1.7%
France's CAC 40 index fell 1.7% to a one-month low, leading the STOXX 600 to its worst monthly drop, driven by a 1.7% decline in bank stocks.
The France-Germany bond spread widened to its highest level since 2024, signaling deteriorating fiscal credibility.
With a divided parliament and two prime ministers already resigned over budget issues, fiscal crisis risks are deepening ahead of next spring's presidential election.
BoE Rate Hike Expectations Shrink to Less Than One<1 Hike Priced
The British pound (GBP) eased 0.1% to $1.3578, retreating from a six-month high of $1.3675 as traders unwound long positions before the Fed Chair's Jackson Hole speech.
Markets are now pricing in less than one rate hike (<0.25%) from the Bank of England (BoE) this year.
UK Gilt yields continue their downward trend, reflecting reduced tightening expectations.
Eurozone Bond Yields Rise on Oil, Hormuz DoubtsYields Up
Germany's 10-year yield rose 2-3 basis points to 3.25%, near a 15-year high, with 2-year and 30-year yields also increasing.
This rise is linked to oil prices, as mediation talks between Iran and Qatar to reopen the Strait of Hormuz show signs of difficulty.
The ongoing uncertainty over the Strait of Hormuz reopening maintains upward pressure on oil prices.
UniCredit CEO Secures Commerzbank Stake48% Stake
UniCredit's CEO acquired a 48% stake in Commerzbank (CBK), leveraging Germany's weakened defense.
Germany's government sold a 35% stake in Commerzbank in 2024, paving the way for the acquisition.
The CEO is scheduled to meet with the German Finance Minister, indicating the acquisition battle is entering a decisive phase, as Germany's government defense was weakened by internal divisions and lack of interest.
Italy Considers Energy Windfall TaxEni -6%
Shares of Eni (ENI) have fallen 6% since August 20th, closing around 1,000 euros yesterday, amid concerns over a potential energy windfall tax.
The Italian government is considering the tax to mitigate the domestic impact of surging oil prices due to the Iran war.
This aims to shift the burden of high energy costs onto energy companies.
Four EU Nations Urge Debate on Russian Frozen Assets€210B Assets
Foreign ministers from the Netherlands, Poland, Spain, and Sweden submitted a letter advocating for renewed discussions on repurposing frozen Russian assets.
Approximately €210 billion in Russian assets were frozen by the EU last December, with proposals to use them for Ukraine's reconstruction.
Belgium's stance remains undecided, making the unanimous agreement required for action uncertain.
Germany's Merz Opposes EU Budget Increase60% Budget Hike
Germany's Merz opposed the European Commission's proposal to increase the EU budget by up to 60% for 2028-2034.
The proposed budget amounts to approximately €2 trillion, a significant increase from current levels.
Merz urged other net contributor leaders to ensure the sustainability of the EU budget.
Mixed Economic Indicators in EuropeMixed Data
Germany's Ifo employment index rose 1.8 points to 94.8, its highest since May 2025, despite ongoing job cuts.
Sweden's GDP growth forecast was raised to 2.5% (from 2.3%), and Denmark's to 3.7% (from 2.7%), boosted by Novo Nordisk's (NVO) Wegovy exports.
The UK's NEET (Not in Education, Employment, or Training) aged 16-24 fell to 981,000, improving but still high since 2013.
FTSE 100 Drops on French Risk ContagionFTSE 100 -0.8%
The UK's FTSE 100 index fell 0.8% to 10,792.54 points, its largest drop in 1.5 months.
Bank and energy stocks led the decline, despite rising oil prices, due to risk aversion stemming from French fiscal and election uncertainties.
The FTSE 250 remained flat, indicating a structural risk aversion focused on large-cap stocks.
Latin America
Brazil's Current Account Deficit-$8.11B Deficit
Brazil's July current account deficit reached $8.11 billion, significantly wider than the market expectation of $6.6 billion.
This marks the largest deficit for the month of July since 2019, driven by a worsening services balance.
Foreign direct investment (FDI) also fell short at $7.46 billion against an expected $7.92 billion.
Brazil's Central Government Surplus+10.8B Reais
Brazil's central government posted a primary surplus of 10.8 billion reais (approximately $2.1 billion) in July.
This slightly exceeded the market forecast of 10.7 billion reais, attributed to a calendar effect from concentrated court order payments in March.
The Planning Minister stated that a primary surplus for 2027 remains achievable, even with non-target expenses.
Brazil Oil Export Tax ConflictLegal Uncertainty
A legal clash erupted over Brazil's 12% oil export tax, with a court suspending the levy while the government's trade committee extended it for 60 days.
This creates significant legal uncertainty for oil companies ahead of the expected expiry date around September 9.
The conflicting decisions set the stage for potential legal disputes between the government and oil firms.
Latin American Currencies Under PressureLatAm FX Weakens
Latin American currencies and stock indices slipped by 0.1% as investors adopted caution ahead of the Fed Chair's Jackson Hole speech.
Brazil's worsening current account deficit provided a specific fundamental reason for the real's depreciation.
Broader regional currency weakness reflects a cautious sentiment in emerging markets.
Colombia's new right-leaning government submitted a revised 2027 budget of 634.95 trillion pesos ($206.02 billion) to Congress.
This budget replaces the previous left-wing administration's proposal and projects a worsening fiscal deficit of 7.2% for 2026.
The government plans an additional 21.9 trillion pesos in cuts from the 2026 budget, with the 2027 plan requiring congressional approval by October 20.
Argentina Peso Hits Record LowARS 1,520/USD
The Argentine peso (ARS) fell 0.33% to an all-time low of 1,520 pesos per US dollar.
Analysts view this extreme depreciation as within market expectations, reflecting the economy's structural high inflation trend.
The currency's persistent weakness highlights ongoing economic challenges in Argentina.
Emerging Markets
Syria Reconnects to Global PaymentsVisa/Mastercard Back
Visa and Mastercard began processing international card transactions in Syria, days after the US lifted its terrorism designation.
This marks Syria's first reconnection to global payment networks in decades, with President Ahmed al-Sharaa reportedly participating in a Visa transaction test.
The Syrian Central Bank has prioritized reintegration into the global financial system as a key step for national reconstruction.
Iran Conflict Shifts to StalemateEconomic Siege
Analysis suggests the Iran conflict, which began with US/Israeli attacks six months ago, has shifted from military engagement to an economic siege and naval blockade.
The Iranian government, having survived military threats, believes time is on its side while maintaining its power base.
Gulf states are concerned about long-term regional instability from a prolonged stalemate, fearing economic hardship may not alter the regime's policies.
Rwanda Hikes Key Interest Rate+50bps to 8.75%
The Central Bank of Rwanda raised its policy rate by 50 basis points to 8.75% to curb inflation.
Governor Soraya Hakuziyaremye stated the hike aims to anchor inflation expectations and prevent secondary effects from the Middle East conflict.
The central bank targets a return to its inflation objective in the second half of 2027.
Russian Ruble at Multi-Month LowRuble -2% vs USD
The Russian ruble weakened more than 2% against the dollar and yuan, hitting a multi-month low, with August projected to be its weakest month this year.
This depreciation is attributed to a triple pressure: the end of tax-related foreign currency support, surging import demand for fuel and refining equipment due to attacks on energy infrastructure in Ukraine, and falling oil prices.
The combination of these factors has put significant strain on the Russian currency.
Russia Threatens UK Military TargetsEscalating Tensions
Russia's Foreign Ministry spokesperson Maria Zakharova warned of potential strikes on UK military targets, both inside and outside British territory.
This threat comes in response to Ukraine's use of British long-range cruise missiles to attack targets within Russian territory.
Russia claims the UK is 'one step ahead' in complicity in terrorism, warning of 'catastrophic consequences' and urging a review of UK policy on Ukraine.
Poland MPC on Inflation OutlookH2 2027 Target
Minutes from Poland's Monetary Policy Council (MPC) meeting indicated a continued slowdown in wage growth, easing inflationary pressures.
CPI inflation is expected to return to around the 2.5% target in the second half of 2027, potentially even lower in the longer term.
However, the inflation outlook faces uncertainty from commodity prices, fiscal policy, and potential increases in VAT and fuel excise taxes.
Indonesia Approves First Female Central Bank HeadDestry Damayanti
Indonesia's parliamentary finance committee approved Destry Damayanti (62), the current interim governor, as the next central bank chief.
She is an internal promotion and former senior deputy governor, deemed highly capable for the five-year term.
Damayanti is set to become the first female head in the history of Bank Indonesia, pending final approval from the full parliament.
China
Prudential Hong Kong New Business DeclinesCross-border Curbs
Prudential's new business profit from Hong Kong-based Chinese customers declined year-on-year in the first half.
This is seen as a signal of Beijing's intent to curb cross-border capital outflows.
Prudential is considered well-positioned with sufficient surplus capital to navigate future uncertainties.
Korea
SK Hynix (000660) Indiana AI Chip Facility$4B Investment
SK Hynix held a groundbreaking ceremony for its $4 billion advanced packaging and research facility in Indiana.
The company secured $458 million in US government grants and up to $500 million in loans for the project by December 2024.
Mass production of HBM4E high-bandwidth memory chips is planned to start in Q3 2029, aiming to enhance access to key customers like Nvidia, Microsoft, and Google.
The facility and supply chain investments are expected to create approximately 7,000 jobs.
Asia
Taiwan Parliament Rejects Drone BudgetNT$21B Plan Rejected
Taiwan's opposition-led parliament rejected the government's special budget of NT$21 billion (approx. $660 million) for new military drones by 2031.
Instead, lawmakers passed an opposition proposal to allocate NT$4 billion annually for drone procurement.
The government emphasized the necessity of drones to counter China's military threats but faced resistance from the parliamentary majority.
S&P Affirms India's Credit Rating'BBB/A-2' Stable
S&P maintained India's sovereign credit rating at 'BBB/A-2' with a stable outlook, citing policy continuity and high infrastructure investment supporting long-term growth.
The agency projects real GDP growth of 6.6% for 2026, indicating a robust growth trajectory.
However, S&P noted the risk of high oil prices worsening external balances and inflationary pressures, a significant constraint given India's heavy reliance on crude oil imports.
India Government Bond Yields RiseYields Up 4bps
India's benchmark 6.94% 2036 bond yield rose 4 basis points to close at 6.8901%, reflecting weak demand.
Treasury bill auctions also saw poor demand, with 182-day and 364-day yields hitting three-month highs.
Market participants anticipate the Reserve Bank of India (RBI) will withdraw excess liquidity from the banking system amid potential policy tightening, exacerbating supply concerns.
HDFC Bank (HDFCBANK) Hits 2.5-Year LowStock -28% YTD
HDFC Bank, India's largest private lender, fell for a third consecutive trading day, reaching a 2.5-year low.
The stock is tracking its worst annual decline since 2008, down 28% year-to-date, amid accumulating legal and leadership risks.
Uncertainty surrounding CEO reappointment delays and regulatory issues has intensified, with Macquarie suggesting a temporary extension could worsen investor concerns.
Top Gainers
Detail
Salesforce (CRM)
Information technology giant posted strong performance.
+22.58%
CrowdStrike Holdings (CRWD)
Cybersecurity firm saw significant gains.
+20.50%
Veeva Systems (VEEV)
Healthcare technology company climbed notably.
+15.20%
Synopsys (SNPS)
Software company for chip design surged.
+13.39%
Palo Alto Networks (PANW)
Cybersecurity leader posted strong returns.
+12.83%
ServiceNow (NOW)
Enterprise workflow software firm rose.
+10.04%
Fortinet (FTNT)
Another cybersecurity firm with notable gains.
+9.67%
NVIDIA (NVDA)
AI chip leader rallied on strong earnings and outlook.