Week ends with a shallow rebound

USA

• Volatility and trading volume in the US market remain limited. This is mainly due to investors waiting for Nvidia’s results, which will be released next week and will be key to determining the market’s next direction. US index futures are up around 0.2% to 0.6% late in the session.
• After a bearish week in financial markets, Friday’s session brings a moderate correction of negative sentiment. However, this rebound does not stem from a fundamental improvement in corporate performance, but rather from a mechanical relationship between debt yields and the attractiveness of equity returns. The decline in yields, which supports demand for stocks, is seen as artificial. It remains to be seen whether Scott Bessent’s intervention in the bond market will have a lasting effect.
• Donald Trump reaffirmed his stance on Iran and ordered a halt to negotiations. The next step in the strategy toward Iran is expected to reduce military pressure in favor of economic pressure, but there are still no concrete details from the US.

Company News, USA

• Newmont Mining (NEM.US): Gold miners are rising on expectations of fiscal unrest. Shares are up about 2.5%.
• Strategy (MSTR.US): Gains in Bitcoin and Ethereum support sentiment toward crypto linked companies, especially “treasury” type firms. The stock is up about 6%.
• Ubiquiti (UI.US): The networking solutions provider beat investor expectations with Q2 2026 results, reporting USD 937 million in revenue versus about USD 870 million expected. Shares are down about 4%.
• Ross Stores (ROST.US): The US discount retailer is strengthening mainly on the back of a sharp improvement in guidance. The better than expected outlook is driven primarily by higher foot traffic and customer visits at Ross and DD’s Discounts stores. Shares are up about 6%.
• Broadcom (AVGO.US): The company is preparing to challenge Nvidia in the chip market. To that end, it is seeking, in cooperation with Apollo Asset Management, loans and investments totaling around USD 60 billion.

Macroeconomic Data, USA

• US releases were dominated by the August services and manufacturing PMI readings.Services PMI: 56.8 (Expected: 54.0)Manufacturing PMI: 53.2 (Expected: 53.9)A sharp rise in activity in the services sector helped offset a notable slowdown in growth in manufacturing. The industrial sector appears to remain under pressure from energy costs and logistical issues. Expansion in the larger services segment could prompt the Fed to moderately tighten its messaging on interest rates.
• Services PMI: 56.8 (Expected: 54.0)
• Manufacturing PMI: 53.2 (Expected: 53.9)
• A sharp rise in activity in the services sector helped offset a notable slowdown in growth in manufacturing. The industrial sector appears to remain under pressure from energy costs and logistical issues. Expansion in the larger services segment could prompt the Fed to moderately tighten its messaging on interest rates.

Europe

• European markets are also correcting the bearish sentiment that dominated most of the week, supported by rising bond prices and falling yields. Gains in Europe are additionally supported by moderately positive economic data. Nearly all major European indices are posting moderate advances, led by Switzerland and Spain, where SUI20 and SPA35 futures are up about 1%.

Company News, Europe

• JD Sports: Shares rose 5%, recovering losses after Thursday’s drop triggered by news that the sportswear retailer cut its annual profit forecast.
• Nibe Industrier: The stock gains 8% after the Swedish heat pump maker released its second quarter results.
• Straumann: The implant manufacturer fell 3% after receiving a negative recommendation from an investment bank.

Macroeconomic Data, Europe

• Eurozone data are better than individual readings from France and Germany might suggest. The composite PMI rose to 52.1, with manufacturing performing particularly strongly, especially in Germany. Services remain the weaker element, falling below 50 in both of the two largest economies. At the same time, lower inflation expectations may give the ECB slightly more room, so the current setup can be assessed as moderately supportive for European assets.

Forex

• Deputy Finance Minister Liao Min said Beijing is preparing new fiscal and financial measures for the second half of the year. AUD and NZD are very sensitive to China’s outlook, so the market immediately bought both currencies. Both are up about 0.8% versus the US dollar.

Commodities

• In agricultural commodities, wheat stands out for volatility, rising due to a worsening supply situation triggered by conflicts in Iran and Ukraine.
• The energy sector is operating amid uncertainty about the next steps by the parties to the conflict in the Persian Gulf. Brent crude is slightly lower, below USD 92 per barrel. European gas is rising, reaching EUR 66.
• Gold and silver gains are accelerating. Precious metals are benefiting from concerns about the stability and predictability of fiscal policy and debt, mainly in the US.

Crypto

• The cryptocurrency market is among the main beneficiaries of turbulence in the US debt market and the increasingly weak quality of US fiscal policy. Strong gains are being recorded across nearly the entire market.Bitcoin is up more than 6%, returning to USD 77,000.Ethereum adds another 4% to its recent wave of gains, reaching around USD 2,440.Solana rises by just under 5% to above USD 91.
• Bitcoin is up more than 6%, returning to USD 77,000.
• Ethereum adds another 4% to its recent wave of gains, reaching around USD 2,440.
• Solana rises by just under 5% to above USD 91.

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