Global markets advanced over the week ending 7 August 2026, with U.S. and European equities posting solid gains while Asian markets were mixed. U.S. Equities were supported by strength in technology stocks and corporate earnings, with the NASDAQ Composite, S&P 500 and Dow Jones Industrial Average rising 5.19%, 3.58% and 2.96%, respectively. Economic data remained softer than expected, with core PCE rising 0.1% in June and Q2 GDP growing at a 1.5% annualised rate, below the 2.1% consensus.
European equities also moved higher, led by the CAC 40 (+2.41%) and STOXX Europe 600 (+1.70%), as stronger-than-expected economic growth supported sentiment. Asian markets diverged, with the Nikkei 225 rising 1.93% and CSI 300 gaining 2.24%, while the Hang Seng declined 0.84%. The yen weakened beyond JPY 157.8, prompting renewed speculation over possible intervention, while China’s official manufacturing PMI fell to 49.2, marking its first contraction since February.
Commodity markets saw a sharp divergence. Brent crude fell 7.29% to USD 83.55 a barrel, while gold surged 6.97% to USD 4,379.60 per ounce, highlighting continued demand for safe-haven assets amid shifting growth and monetary-policy expectations.
MarketSnapshot
Weekly performance across major global indices (week ending 7 August 2026)
| Index | Friday’sClosingPrice | WeeklyChange(%) | Direction | |
| DJIA | 54036.93 | 2.96 | ▲ | |
| S&P500 | 7757.64 | 3.58 | ▲ | |
| NASDAQComposite | 26690.62 | 5.19 | ▲ | |
| FTSE100(UK) | 10,901.09 | 0.3 | ▲ | |
| CAC40(France) | 8,714.93 | 2.41 | ▲ | |
| STOXXEurope600 | 660.25 | 1.7 | ▲ | |
| Nikkei225(Japan) | 65,606.71 | 1.93 | ▲ | |
| CSI300(China) | 4,694.44 | 2.32 | ▲ | |
| HangSeng(HongKong) | 25,668.03 | -0.84 | ▼ | |
| BrentCrude | 83.55 | -7.29 | ▼ | |
| Gold | 4,379.60 | 6.97 | ▲ |
ForeignExchange
(For the week ending 7 August 2026)
| Pair | Friday’sClose | Week’sChange (%) |
| EUR/USD | 1.156 | -0.31 |
| USD/JPY | 157.8 | 1.49 |
| GBP/USD | 1.3491 | -0.22 |
| USD/CHF | 0.8081 | -0.29 |
| AUD/USD | 0.7068 | -0.61 |
U.S.MarketsOverview
Major U.S. equity indices finished the week higher, with the NASDAQ Composite rising 5.19%, the S&P 500 gaining 3.58%, and the Dow Jones Industrial Average advancing 2.96%, led by technology stocks. Market sentiment was boosted by the sharp repricing of Federal Reserve expectations following the July jobs report, as traders significantly pared back expectations for a September rate hike. The report (U.S. Bureau of Labor Statistics, August 2026) showed nonfarm payrolls falling by 23,000, versus consensus expectations for a gain of roughly 83,000–85,000, while the unemployment rate declined to 4.1%. The weaker labour-market data reinforced expectations for a more accommodative Fed policy path and supported the broader equity rally.
EuropeanMarkets
European equities advanced during the week, with the STOXX Europe 600 rising 1.70% to a fourth consecutive record close, France’s CAC 40 gaining 2.41% and the UK’s FTSE 100 edging 0.30% higher. Corporate earnings were the primary driver, with second-quarter results across the region broadly beating expectations and lifting sentiment, while softer-than-expected U.S. The jobs report added further support by easing concerns over the path of Fed policy. Gains were tempered somewhat by lingering geopolitical uncertainty, as volatility around the reopening of Middle East shipping routes kept energy stocks and oil-sensitive sectors choppy through the week.
AsianMarkets
Japan
Japanese equities advanced, with the Nikkei 225 rising 1.93% over the week to close at 65,606.71. The yen continued to weaken, with USD/JPY rising 1.49% to close at 157.80, extending the currency’s recent volatility and keeping speculation alive over the potential for renewed official intervention. Currency movements remained an important focus for Japanese investors as markets assessed the yen’s trajectory following the coordinated U.S.-Japan intervention earlier in the summer, which had initially pulled USD/JPY down toward the mid-150s before the pair began drifting higher again.
China
Chinese markets diverged, with the CSI 300 rising 2.32%, while the Hang Seng Index declined 0.84% over the week, closing at 25,668.03. The key economic focus was China’s manufacturing sector, where the official manufacturing PMI fell to 49.2 in July, below the 50 threshold and down from 50.3 in June — its first contraction in five months, according to the National Bureau of Statistics. The weaker reading highlighted continued pressure on manufacturing activity and raised concerns over the pace of China’s economic recovery.
Commodities
Oil
Brent crude closed the week at USD 83.55 a barrel, down 7.29% from USD 90.12 the previous Friday. The sharp decline reflected easing oil-market pressures and provided some support to inflation-sensitive markets.
Gold
Gold closed at USD 4,379.60 per ounce, up 6.97% from USD 4,094.05 the previous Friday. The strong gain reflected increased demand for safe-haven assets and continued interest in gold amid monetary-policy and macroeconomic uncertainty.
WeekAhead
Points of focus flowing from the week’s developments:
- Federal Reserve policy: The sharp downside surprise in the July employment report, with nonfarm payrolls falling by 23,000 versus expectations for 83,000–85,000 additions, has largely removed expectations for a September Fed rate hike. Markets will focus on upcoming data and Fed communication for further signals on the policy path.
- U.S. labour market and inflation: The unemployment rate fell to 4.1%, but the decline in labour force participation to its lowest level in more than five years points to a softer underlying labour-market picture. Incoming inflation and activity data will be important in determining whether the weaker jobs report marks a broader loss of momentum.
- U.S. dollar and the yen: The repricing of Fed expectations has weighed on the U.S. dollar, while the yen remains volatile around the JPY 158 level.
- European equities: European markets enter the week with positive momentum, with the STOXX 600 reaching a record high amid stronger corporate earnin
- gs and expectations for a more accommodative global policy backdrop.
- China and Asian markets: Asian markets remain mixed, with China’s manufacturing PMI still in contraction territory and the yen continuing to trade with heightened volatility.
- Equity momentum: The shift toward easier U.S. monetary policy expectations has supported risk assets, but the divergence in growth momentum across the U.S., Europe and Asia remains important. Markets will remain sensitive to incoming economic data, corporate earnings and changes in global rate expectations.
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