Morning Note: A Round-up of Global Financial Market News.

Market News

Investors are cautiously awaiting Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium later today for clues about the outlook for US interest rates. Markets are currently pricing in around a 65% chance that the Fed will keep rates unchanged at its upcoming policy meeting in September. Meanwhile, Kansas City Fed President Jeff Schmid said monetary policy is not restraining the economy. The yield on the 10-year US Treasury is currently 4.68%, while gold is trading around $4,600 an ounce.

Brent crude slipped toward $88 a barrel, paring gains from the previous session as traders continued to monitor developments in the Middle East and efforts to reopen the Strait of Hormuz. Goldman Sachs said oil exports from the Persian Gulf have recovered to around two-thirds of pre-war levels amid increased flows through Hormuz. Iran and Oman also reached a revenue-sharing agreement over the strategic waterway, although Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait.

US equities moved higher last night – S&P 500 (+0.7%); Nasdaq (+1.6%) – driven by semis, software, and AI-linked names, with Nvidia up nearly 9%, while Salesforce, Okta, and CrowdStrike also posted outsized gains.

In Asia this morning, equity markets were mixed: Nikkei 225 (+0.4%); Hang Seng (+0.1%); Shanghai Composite (-0.1%); Kospi (-1.8%). The yen weakened slightly to trade around 159.55 per dollar after Tokyo’s key inflation gauge accelerated for a third month. A sale of Japan’s two-year government bonds at auction Friday saw weaker demand amid growing speculation of central bank tightening.

The FTSE 100 is currently 0.3% higher at 10,819. Sterling trades at $1.3585 and €1.1665, while the 10-year Gilt yields 5.05%.

Copper is trading close to a record high as traders continue to divert shipments toward the US amid elevated premiums and expectations of new tariffs under the Trump administration.

Source: Bloomberg