Equities remain closer to record levels this week, softer US retail sales and consumer sentiment data reheat concerns over the health of the consumer.
This week @ 15:30 pm Friday 21st August in London.
Markets:
- FTSE 100 was flat this week at 10,748, as gains in energy and defensive stocks offset pressure from rising gilt yields and a broader global bond market sell-off.
- S&P 500 fell 1.86% this week to 7,641, weighed down by a sharp sell-off in long-dated US Treasuries that pushed borrowing costs to their highest levels in almost two decades, pressuring richly valued growth stocks.
- Nasdaq Composite fell 2.30% this week to 26,115, underperforming as surging long-term yields weighed hardest on technology and AI-related names, with a partial recovery into Friday after a US Treasury buyback announcement steadied bond markets.
- STOXX Europe 50 fell 0.48% this week to 6,453, capping a broadly weaker week for European equities as elevated oil prices and the global bond sell-off weighed on sentiment.
Bonds:
- UK 10-year gilt yields rose 2.8bps this week to 5.04%, extending a run above the 5% level amid persistent inflation concerns, higher oil prices and mounting fiscal pressure ahead of the Autumn Budget.
- US 10-year Treasury yields rose 2.0bps this week to 4.71%, as longer-dated US debt came under sustained selling pressure over concerns about the scale of government borrowing, heavy bond issuance and inflation that remains above the Federal Reserve’s target.
Commodities:
- Brent crude rose 6.20% this week to $94.01/bbl, as the US moved to tighten economic pressure on Iran with no resolution in sight over the Strait of Hormuz standoff, extending a run of weekly gains.
- Gold rose 4.68% this week to $4,645/oz, supported by broad US dollar weakness and safe-haven demand as investors weighed the fallout from bond market volatility and ongoing Middle East tensions.
- Copper fell 0.45% this week to $6.58/lb, easing after London Metal Exchange inventories rose sharply from recent lows, though a softer dollar limited the decline.
FX:
- GBP/USD rose 0.89% this week to 1.3656, its best level since February, as broad-based dollar weakness stemming from US fiscal and bond market concerns outweighed a cooling UK labour market.
- GBP/EUR fell 0.22% this week to 1.1671, as sterling’s gains were concentrated against a weaker dollar while the euro held broadly steady on resilient eurozone data.
Macro:
- UK flash PMIs (August) showed a marked services rebound, with the composite reading improving on stronger services activity even as manufacturing eased, providing some late-week support to sterling.
- US 30-year Treasury yields reached their highest level since 2007 this week, reflecting investor concern over rising federal debt issuance, persistent inflation and heavy corporate borrowing linked to AI infrastructure spending.
- The US Treasury announced a substantial increase in long-dated debt buybacks in an attempt to stabilise bond markets, offering only temporary relief to yields.
- The US signalled further economic measures aimed at isolating Iran, with no breakthrough yet in the Strait of Hormuz standoff, keeping energy markets on edge.
Company news:
- No notable updates from our holdings or target list this week.
What we will be keeping an eye on next week…
w/c 24th Aug 2026
- The Federal Reserve’s Jackson Hole Economic Policy Symposium, 27th to 29th August, with new Fed Chair Kevin Warsh due to deliver his first keynote address as Chair on Friday 28th August, closely watched for signals ahead of September’s policy meeting.
- NVIDIA Q2 FY27 results, Wednesday 26th August (after market close), a key AI infrastructure bellwether and a name on our target list.
Enjoy the weekend
Markets move constantly and the numbers in this update will change. This is a snapshot only, pulled together from a range of sources, and is meant as a quick guide rather than a precise record. It’s not investment advice and shouldn’t be used to make trading or investment decisions. If you need more accurate or specific data over a defined period, please get in touch with a member of the team who will be happy to help.
Important Information
This article is for information only and does not constitute advice or recommendation and you should not make any investment decisions based on it. The views and opinions of this article are those of Casterbridge at the time of writing and may change without notice. Any opinions should not be viewed as indicating any guarantee of return from investments managed by Casterbridge nor as advice of any nature. It is important to remember that past performance and the value of an investment, and any income from it, may go down as well as up and the investor may not get back the original amount invested.