Global Markets Digest: Warsh Speech Anticipation, Europe Growth Concerns, EM Currency Woes
29 August 2026 · Evening
US equities extended gains for a second day, with the S&P 500 up 0.72% and Nasdaq climbing 1.57%, as the VIX fell to 14.50, reflecting sustained risk appetite ahead of Fed Chair Warsh's Jackson Hole speech.
However, economic concerns emerged in Europe as France's Q2 GDP was revised down to 0.0%, raising flags about its fiscal deficit targets.
In emerging markets, the Philippine Peso depreciated to a record low of 62.22 per dollar, negating the impact of the central bank's recent rate hike.
Brent crude experienced its first weekly decline in three weeks, falling 5%, while the Australian Dollar strengthened for a ninth consecutive week on an inflation surprise.
Asian economies present a mixed picture as Japan's inflation accelerates and India's growth outlook improves, while currency pressures mount in emerging markets.
Global Markets
Detail
S&P 500
Closed at 7,730.99 on August 27.
+0.72%
Nasdaq
Closed at 26,541.35 on August 27.
+1.57%
STOXX 600
Traded at 655.16 as of 19:42 KST on August 28.
+0.51%
Nikkei 225
Closed at 66,405.34 on August 28.
+0.41%
CSI 300
Closed at 4,609.18 on August 28.
-0.46%
KOSPI
Closed at 6,788.88 on August 28.
-1.79%
Hang Seng
Closed at 25,584.79 on August 28.
+0.07%
Dollar Index (DXY)
Closed at 99.18 on August 28.
+0.05%
USD/JPY
Closed at 159.65 on August 28.
+0.16%
EUR/USD
Closed at 1.16 on August 28.
-0.05%
USD/KRW
Closed at 1,373.62 on August 28.
-0.47%
USD/CNY
Closed at 6.72 on August 28.
+0.02%
US 10-Year Yield
Closed at 4.676% on August 27.
+2.7bp
US 2-Year Yield
Closed at 4.234% on August 27.
+2.5bp
Japan 10-Year Yield
Closed at 2.928% on August 28.
+3.6bp
Germany 10-Year Yield
Traded at 3.276% as of 19:42 KST on August 28.
+0.9bp
Korea 10-Year Yield
Closed at 4.274% on August 28.
+2.2bp
US HY Spread
Closed at 267bp on August 26.
-3.0bp
WTI
Closed at 83.25 on August 28.
-0.34%
Gold
Closed at 4,603.62 on August 28.
+0.03%
Copper
Closed at 6.73 on August 28.
+2.15%
VIX
Closed at 14.50 on August 27.
-4.73%
Australian Dollar
The AUD/USD rose to 0.7204, breaking the 72-cent resistance level and reaching a 3-month high.
+0.2%
Jackson Hole Symposium
Markets are cautious ahead of Fed Chair Warsh's debut speech at the Jackson Hole Symposium, scheduled for 2 PM GMT.
Awaited
New Zealand Central Bank
The Reserve Bank of New Zealand (RBNZ) is expected to raise its cash rate by 25bp to 2.75% on September 2, according to 27 out of 31 economists polled.
Rate Hike
Global Equity Markets
Global stock markets maintained a cautious stance, with rallies limited by anticipation of Fed signals and ongoing rate hike concerns.
Cautious
Brent Crude
Brent crude fell to $89.2 per barrel, marking its first weekly decline in three weeks with a 5% drop.
-5% Weekly
G20 Finance Ministers Meeting
G20 Finance Ministers and Central Bank Governors will meet in Asheville, North Carolina, to discuss economic growth, global imbalances, and Iran sanctions.
Aug 31-Sep 1
United States
Warsh Jackson Hole SpeechPolicy Focus
Fed Chair Warsh is set to deliver his keynote address at Jackson Hole, with markets focused on signals regarding inflation policy.
July's Personal Consumption Expenditures (PCE) rose 3.7%, exceeding the Fed's 2% target for the 65th consecutive month.
Regional Fed presidents have advocated for further rate hikes due to persistent inflation, while Warsh is expected to reiterate a firm stance on inflation containment.
Venezuela Oil AccessNegotiations
The Trump administration is reportedly negotiating long-term access to some of Venezuela's oil fields for development by US companies.
High-level talks between Caracas and Washington are ongoing, with reports suggesting Venezuela is considering leaving OPEC.
Such an agreement could face constitutional challenges and legal hurdles.
Dollar StrengthResilient
The dollar remained flat near a one-week high, maintaining short-term resilience despite a two-month weakening trend.
GBP/USD traded within a range of 1.35825-1.3597, while USD/JPY rose from 159.30 to 159.65, nearing its August 18 high of 159.78.
The yen partially gave back gains secured by previous intervention from Japanese authorities.
Upcoming US Economic DataJobs Report
Next week's focus includes the US employment report for August, with an estimated 45,000 job additions.
The S&P 500 remains within 1% of its all-time high, indicating market stability.
Other key events include the RBNZ's expected 25bp rate hike to 2.75% and the Bank of Canada's likely decision to hold rates at 2.25%.
South Korea-US RelationsNK Talks
South Korea's National Security Advisor supported US efforts to resume dialogue with North Korea, while expressing concerns about potential weakening of South Korea's security posture.
South Korea seeks deeper cooperation with the US on investment, information sharing, and the transfer of wartime operational control.
This comes amidst broader discussions on regional security and diplomatic engagement.
Oil Prices-5% Weekly
Oil prices fell more than 5% this week, driven by an agreement between Iran and Oman to manage transit and share revenues in the Strait of Hormuz.
Brent crude dropped 0.4% to $89.33 per barrel, reflecting the reduced geopolitical risk premium.
The US maintained its reluctance to re-engage in direct negotiations with Iran, despite the ongoing developments in the region.
NVIDIA (NVDA)+8.74%
Q2 revenue beat consensus, with Q3 guidance for 74% gross margin and Vera Rubin contributing ~20% to data center revenue.
Projected +70% revenue growth for next year, signaling continued strong AI market expansion.
Reported to be negotiating the acquisition of Hugging Face for over $13 billion.
Marvell Technology (MRVL)-8.4%
Q2 adjusted EPS $0.94 and revenue $2.74 billion both exceeded consensus, with data center revenue at $2.17 billion.
Management raised FY2027 revenue guidance to $12 billion (+45% YoY) and FY2028 to $18 billion (+50% YoY).
Stock dropped sharply as Google AI chip contract revenue is expected to fully materialize only by FY2029.
Meta Platforms (META)-0.87%
Court approved an $18 billion settlement with US states regarding child online safety lawsuits.
EU Commission continues dialogue on potential DSA violations related to addictive design, while Poland requested a €250 million fine.
Implementing measures to restrict youth social media use following the US settlement.
Eli Lilly (LLY)-1.12%
FDA approved Mounjaro (tirzepatide) for reducing cardiovascular risk in type 2 diabetes patients, expanding its prescribing population.
The GLP-1 drug, also sold as Zepbound for obesity, demonstrated superiority over Trulicity in reducing cardiovascular events in clinical trials.
Moderna (MRNA)-4.60%
Jointly developed mRNA cancer vaccine with Merck achieved successful late-stage clinical results, marking a historic breakthrough.
Announced a $2.6 billion convertible senior notes offering, purchasing a hedge overlay to offset dilution up to 175% premium.
FDA approved updated formulations for Spikevax and Mnexspike for the 2026-2027 season.
Merck (MRK)-2.33%
Jointly developed mRNA cancer vaccine with Moderna achieved successful late-stage clinical results in over 1,000 patients.
Experts view this as the dawn of personalized cancer vaccine therapy, training the immune system to fight specific cancers.
IREN+2.40%
Shifted to a net loss due to early retirement of Bitcoin mining equipment during its transition to AI cloud services.
Secured a new multi-year customer contract with a leading AI developer and raised $2.8 billion in new funding for AI chip purchases.
Funding was led by Blue Owl and PIMCO, with the company expanding its AI cloud business.
SanDisk/KioxiaN/A
Their joint venture plans over $31 billion (¥5 trillion) in investment in Japan over six years.
Investment includes new production facilities to expand memory leadership, signaling a ramp-up in AI-related capacity.
Lam Research (LRCX)N/A
Increased its quarterly dividend from $0.26 to $0.33 per share.
Apple (AAPL)N/A
Confirmed a new iPhone launch event for September 9, fueling expectations for a foldable model.
Abbott (ABT)N/A
Its next-gen left atrial appendage occluder, Amulet 360, received European CE Mark approval.
First procedures were completed in Germany and Denmark, with a broader European rollout planned.
Johnson&Johnson (JNJ) / AbbVie (ABBV)N/A
J&J's oral psoriasis drug received marketing approval in China.
AbbVie submitted Skyrizi subcutaneous induction therapy for Crohn's disease to the EMA for expanded indication.
GE Vernova (GEV)N/A
Appointed Claire McDonough as its new CFO, effective January 2027.
Secured a contract with Laing O'Rourke to upgrade the England and Wales power grid and supply transmission technology to National Grid.
Lockheed Martin (LMT)+0.05%
Extended its $3 billion revolving credit facility and secured a new $2.25 billion 364-day credit facility.
Proposed an $1.8 billion industrial cooperation package for F-16 Block 70 to Peru.
Boeing (BA)N/A
Deepening contract negotiation breakdown with unions raises strike risk and production concerns.
Alphabet (GOOGL)-0.39%
The FTC is reportedly in the final stages of preparing a lawsuit over YouTube's social media policies.
Modified its spam policy to avoid EU antitrust fines and settled a UK app developer lawsuit for $353 million.
Unveiled its new AI model, Gemini Omni 1.1 Flash, for developers.
JPMorgan (JPM)N/A
Led a $5 billion debt package for Volta AI data center construction.
Anticipated capital impact of up to $13 billion from Fed capital regulation changes.
Bank of America (BAC)N/A
Court approved a $72.5 million settlement for Epstein victims.
Visa (V) / Mastercard (MA)N/A
Re-established international card payment services in Syria after 15 years, following the removal of US terror designation.
Southern Company (SO)N/A
Subsidiary Georgia Power's contract to supply 3200 megawatts to OpenAI was approved by state regulators.
Expected to generate new revenue starting 2029 from this significant power supply agreement.
Palo Alto Networks (PANW)+12.83%
Jefferies raised its target price for the cybersecurity firm from $335 to $450, a +34% increase.
Circle Internet Group (CRCL)+4.82%
Secured an official partnership with Chelsea FC, becoming the principal partner and front-of-shirt sponsor from the 2026/27 season.
Amazon (AMZN)-1.54%
Signed contracts to purchase electricity from four Swedish wind farms.
Aims to meet energy demand for expanding AI data centers and reduce carbon emissions.
Europe
France Q2 GDP0.0%
France's Q2 GDP growth was revised down to 0.0% from an initial estimate of 0.2%, indicating economic stagnation.
Exports saw a strong rebound of +2.9% due to the aviation sector, but this was overshadowed by weak household consumption and services.
The Finance Minister described the first post-summer economic figures as 'horrible,' warning of potential risks to annual growth and fiscal deficit targets.
Sweden & Switzerland Economic SignalsPositive
Sweden's Q2 GDP grew 1.6% quarter-on-quarter (consensus 1.4%) and 3.3% year-on-year (consensus 2.5%), driven by broad-based growth and improved household sentiment.
Switzerland's KOF Economic Barometer rose to 106.7 in August (exceeding consensus 103.3), signaling improved economic prospects for the next six months.
These figures suggest pockets of resilience within the European economy.
Eurozone Economic SentimentImproved
The Eurozone Economic Sentiment Indicator rose to 98.4 in August from 97.1 in July, showing broad recovery across industry, services, and retail.
Producer price expectations softened from 17.8 to 16.4, indicating easing inflationary pressures, while consumer price expectations increased from 30.4 to 33.0.
Household sentiment, though still weak at -15.5, showed improvement from -15.9, and Italian consumer confidence rose to 94.5.
Spain Inflation4.5%
Spain's August EU-harmonized CPI accelerated to 4.5% year-on-year (from 3.9% in July), slightly exceeding the 4.6% market expectation.
The increase was primarily driven by fuel prices, with core inflation at 2.9% and domestic CPI at 4.3%.
Central European inflation also showed sporadic increases, with Belgium's August CPI at 3.97% and Austria's July PPI at 3.3%.
German Political InstabilityRising Concern
Chancellor Merz's approval rating fell to 16%, a 30-year low, raising concerns about the stability of the conservative bloc ahead of September regional elections.
The surge in support for the far-right AfD party increases political uncertainty for the government's planned €500 billion infrastructure investment.
Germany's weak economic recovery faces risks of policy vacuum amid political turmoil, compounded by France's fiscal concerns.
Swiss KOF Economic Barometer+106.7
The Swiss KOF leading indicator rose to 106.7 in August, surpassing the forecast of 103.3.
This increase signals robust economic growth and a positive outlook for the Swiss economy.
Swedish EconomyStrong Q2 Growth
The Swedish economy experienced strong growth in the second quarter, exceeding initial estimates.
Consumer sentiment also showed a significant improvement, indicating increased confidence in the economic recovery.
Irish Retail Sales+1.3% MoM
Ireland's provisional retail sales volumes increased by 1.3% month-on-month in July.
Year-on-year, retail sales volumes saw a rise of 2.2%, reflecting steady consumer spending.
German YieldsWeekly Rise
German bond yields are set for a weekly rise, despite a recent fall in oil prices.
Market focus remains on global monetary policy signals, influencing bond market movements.
Belgian CPI+3.97% YoY
Belgium's Consumer Price Index (CPI) increased by 0.40% month-on-month in August.
Poland projects its 2027 budget deficit to remain at 7.1% of GDP, with growth forecast at 3.0% and inflation at 2.8%.
Defense spending is set to expand to over 4.5% of GDP, allocating 19.8 billion zlotys for military expenditures.
Czech Q2 Growth+1.9% YoY
The Czech Republic's Q2 GDP growth was confirmed at 1.9% year-on-year and 0.4% quarter-on-quarter.
Growth was primarily driven by a 2.7% rise in household consumption and a 7.1% increase in fixed capital formation.
Greek Producer Prices+11.8% YoY
Greece's July Producer Price Index (PPI) surged by 11.8% year-on-year, primarily due to a 21.5% jump in energy prices.
On a monthly basis, PPI increased by 2.9%, contrasting with a 3.0% decline in June.
Japan
Tokyo CPI AcceleratesCore CPI +1.8%
Tokyo's core CPI (excluding fresh food and energy) rose 1.8% year-on-year in August, exceeding market expectations of 1.7% and accelerating from July's 1.7%.
The overall CPI increased 1.9% year-on-year, while the index excluding fresh food and energy reached 2.0%, signaling broad price increases.
JGB Yields Rise5-yr JGB 2.195%
Japan's 5-year government bond yield reached a record high of 2.195% (+4bp), and the 2-year yield hit 1.7% (+1.5bp).
Demand for the 2-year bond auction significantly decreased from the previous month, reflecting weakening investor sentiment amid inflation concerns.
Government Bond Issuance Cap¥40 Trillion
The Japanese government aims to cap new bond issuance at approximately 40 trillion yen for fiscal year 2027.
This policy seeks to curb bond issuance despite budget requests exceeding 130 trillion yen for the fourth consecutive year, relying on increased tax revenues.
Toyota (TM) Sales Decline-4.8% Global
Toyota (TM) reported an 4.8% decline in global sales for July, totaling 856,125 units, with production also down 2.1%.
Sales in China plummeted 24.3% for the sixth consecutive month, while US sales decreased by 0.8%, and the Middle East also showed weakness.
Japan Unemployment2.4% in July
Japan's unemployment rate improved to 2.4% in July, slightly better than the market expectation of 2.5%, indicating robust underlying employment demand.
The job-to-applicant ratio remained at 1.18, signaling persistent labor shortages, particularly in the service sector due to an aging population.
G20 Meeting FocusPolicy Coordination
Japan's Finance Minister and BOJ Governor are expected to coordinate policy with the US at the upcoming G20 meeting in North Carolina.
Key discussions will likely address concerns over the Bank of Japan's delayed policy response and potential measures regarding yen depreciation.
India
India 10-Year Bond Yield6.91% (2-mo High)
India's 10-year government bond yield rose to 6.91%, its highest in over two months, widening the spread with US 10-year Treasuries to 224 basis points.
Expectations of further tightening by the Reserve Bank of India and a large upcoming supply of government bonds are driving the yield increase.
Nomura Raises GDP ForecastFY27 +7.0%
Nomura upgraded India's FY27 GDP growth forecast by 40 basis points to 7.0%, reflecting strong economic momentum in the first fiscal quarter (April-June).
The Q1 growth is projected at 7.8%, and if it surpasses expectations, the RBI may revise its annual growth outlook at its October policy meeting.
SEBI IPO Rules for Small FirmsStandardization
The Securities and Exchange Board of India (SEBI) is considering applying large-company IPO rules to smaller firms, including institutional investor allocation and cost alignment.
This move aims to enhance governance and strengthen investor confidence by standardizing key regulatory elements across all public offerings.
Emerging Markets
Philippine Peso Hits Record LowPHP/USD 62.226
The Philippine Peso weakened to a record low of 62.226 per US Dollar, marking its third consecutive weekly decline.
This depreciation occurred despite the Bangko Sentral ng Pilipinas (BSP) raising its key interest rate by 25 basis points to 5%, with energy cost concerns and weak capital inflows exerting continuous pressure.
Russia Rate & Growth OutlookKey Rate 13.5%
Sberbank, Russia's largest financial institution, forecasts the central bank's key rate to be cut to 13.5% by year-end, and projects 0.4% growth for 2026.
The Russian economy's Q2 performance exceeded market expectations, driven by robust government and consumer demand, though the impact of Ukrainian attacks remains a variable.
Middle East
Iran War Spurs InfrastructureGulf Investments
The potential near-blockade of the Strait of Hormuz due to conflict in Iran is prompting Gulf nations to invest billions in alternative energy export infrastructure.
UAE and Saudi Arabia are developing pipelines, ports, and railways to bypass the critical chokepoint, reshaping global trade routes.
Iran Leader UnseenMojtaba Khamenei
Iran's Supreme Leader Mojtaba Khamenei has not been seen publicly for six months, raising concerns about a leadership vacuum amid ongoing conflict.
Despite official statements of his continued decision-making authority, doubts about his health and role are intensifying among the Iranian populace.
China
Shanghai FTZ Debt MarketSubsidies Planned
Shanghai plans to introduce subsidies to activate its dormant free trade zone (FTZ) offshore debt market, aiming to reduce bond issuance costs for foreign issuers.
The People's Bank of China will allow domestic banks to purchase FTZ bonds within limits, as the market has stagnated since its 2016 opening due to a lack of foreign participation.
S&P Affirms China RatingA+ Stable Outlook
S&P Global Ratings affirmed China's 'A+' credit rating with a stable outlook, projecting economic growth above 4% for the next 1-2 years.
The rating agency cited the government's sustained fiscal support and progress in supply chain, technological capabilities, and manufacturing competitiveness as key factors.
China Housing Market OutlookInvestment -20%
A Reuters poll forecasts China's home prices to fall by 3.4% this year, a smaller decline than previously expected, but property investment is projected to slump by 20%.
Sales area is also expected to decrease by 10%, indicating a deepening weakness in the sector with an uncertain stabilization timeline.
Tibet-Nepal Landslide LakeFlood Risk
China is urgently working to minimize the risk from a mountain barrier lake near its border with Nepal, which threatens further flooding if it breaches.
Both China and Nepal have issued warnings about new flood risks in the Himalayan region following recent landslides that killed hundreds.
Chinese Yuan StabilityCNY/USD 6.7211
The Chinese Yuan remained steady at 6.7211 per US Dollar, near its strongest level in 3.5 years, as the People's Bank of China maintains a conservative policy stance favoring low volatility.
Analysts anticipate limited significant movements for the Yuan in the coming months, with markets closely watching future US monetary policy directions.
PBOC Reverse Repo¥20 Billion
The People's Bank of China injected 20 billion yuan into the financial system via 7-day reverse repos.
The interest rate for the reverse repos was maintained at 1.40%.
Korea
Korean Won StrengthensUSD/KRW 1375.5
The Korean Won strengthened to 1375.5 against the US Dollar, reaching its strongest level in 13 months.
This appreciation is primarily supported by the Bank of Korea's hawkish stance, with a high likelihood of an additional 0.25% interest rate hike this year.
KOSPI Declines-1.07%
The KOSPI index fell by 1.07% to 6,838.22, marking its second consecutive weekly decline amid sustained foreign net selling.
Momentum from AI-related optimism has faded, leading to increased profit-taking and investor caution ahead of the Fed's Jackson Hole conference.
Korea Exports BoomAug +62.6% YoY
South Korea's exports in August are projected to surge by 62.6% year-on-year, according to a Reuters poll, marking the 15th consecutive month of growth.
This export boom is primarily driven by strong demand for AI chips, led by Samsung Electronics and SK Hynix.
Taiwan
Penghu Islands DefenseMilitary Readiness
Taiwan is actively strengthening the military defense posture of its Penghu Islands.
This initiative is part of broader preparations for a potential Chinese invasion, enhancing the nation's readiness.
Asia
Taiwan's Defense PreparationsTensions Rise
Taiwan's military is strengthening outposts and checking ammunition, including 105mm shells, on islands critical for defense.
Civilian defense drills are being conducted in the region, preparing for a potential first strike from China's PLA.
China's government criticized Taiwan's military enhancement plans as 'delusional,' deepening the divide between the two sides.
Latin America
Brazil's Public Debt OutlookDebt Not Concern
President Lula stated that public debt is not a concern for a potential new term, citing an improved fiscal scenario since 2023.
Brazil's government anticipates achieving a primary surplus this year, supported by economic growth.
Lula believes economic expansion will help reduce the public debt-to-GDP ratio.
Brazil's Oil Export Tax DisputeTax Uncertainty
Brazil's 12% oil export tax faces uncertainty after a court ordered its suspension.
This conflicts with the government's foreign trade agency (Camex) approving a 60-day extension for the tax.
The situation could lead to a legal dispute between the Lula administration and oil producers.
Top Gainers
Detail
Salesforce (CRM)
Information Technology sector leader with a market cap of $206 billion.
+22.58%
CrowdStrike Holdings (CRWD)
Cybersecurity firm in the Information Technology sector, market cap $232 billion.
+20.50%
Veeva Systems (VEEV)
Healthcare technology provider with a market cap of $46 billion.
+15.20%
Synopsys (SNPS)
Electronic design automation software company, market cap $89 billion.
+13.39%
Palo Alto Networks (PANW)
Cybersecurity company with a market cap of $312 billion.
+12.83%
ServiceNow (NOW)
Cloud computing company in the Information Technology sector, market cap $143 billion.
+10.04%
Fortinet (FTNT)
Cybersecurity solutions provider with a market cap of $127 billion.
+9.67%
NVIDIA (NVDA)
Semiconductor giant in the Information Technology sector, market cap $5,517 billion.
+8.74%
Datadog (DDOG)
Monitoring and analytics platform for cloud applications, market cap $87 billion.
+6.70%
Autodesk (ADSK)
Software company for architecture, engineering, construction, and media, market cap $57 billion.