The S&P/TSX Composite Index rose nearly 1% to trade above 36,500 after US President Donald Trump paused new tariffs on Canadian goods. Trump announced late Tuesday that he was putting a three-day pause on the new 50% tariffs that were set to take effect on Wednesday, saying the two countries had reached a deal. The prospect of a deal lent support to Canadian exporters, with Magna International adding 1% and Nutrien rising nearly 2%. Oil prices hit a three-week high as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions persisted, supporting energy producers. Suncor and Tourmaline Oil added about 1%. Gold prices were supported by a weaker dollar as global bond yields stabilized, boosting mining stocks. Agnico Eagle jumped 7%, while Barrick and WPM rose about 6% each. Meanwhile, financials remained pressured amid energy-driven inflationary pressures stemming from the Middle East conflict and ahead of the release of the US Fed's July meeting minutes.

TSX Rises as US Pauses New Tariffs

The Ibovespa added more than 1.5% to trade above 169,000 on Wednesday, set to rebound from eleven consecutive days of losses amid a stabilization in global bond yields.Yields in major economies declined after the US Treasury said it would double long-term security buybacks. Financials posted gains, with Itaú, Bradesco, Itaúsa and Banco do Brasil advancing about 2% each. Petrobras gained over 1.5% as oil futures rose for a fourth consecutive session as prospects for a deal to end the conflict in the Middle East diminished. Vale rose nearly 2% amid iron ore supply concerns following the failure of wage negotiations between BHP and workers in Port Hedland. Axia added more than 2% after the results of its share buyback operation and a buy recommendation from Itaú BBA. Embraer gained nearly 0.5% after Itaú BBA raised its price target. Other notable performers included Ambev (+2%), Rede D’Or (+1.5%) and CSN Mineração (+4%).

Ibovespa Rebounds as Yields Ease

US stock indices were higher on Tuesday after the Treasury signaled it will buy back more Treasury securities. The S&P 500, Dow, and Nasdaq 100 were slightly above the flatline. The Treasury stated it would double the limit on buybacks of long-term notes and bonds, adding to a series of other measures it took to control the recent surge in longer benchmark borrowing costs. Besides reducing rates, the outlook of higher dollar liquidity also supported equities. US yields were also in focus ahead of the release of FOMC minutes. Gains were broad on most sectors, with software application and hyperscalers mostly trading higher. Meanwhile, retail stocks gained after TJX, Target, and Lowe's all reported second-quarter earnings. On top of that, Moderna stock prices doubled and Merck surged 10% after a trial on their joint vaccine cut recurrence in melanoma.

US Stocks Rebound on Higher Treasury Buyback

The Dow Jones Index is gaining 130 points or 0.24 percent on Wednesday. Leading the gains are Merck (10.20%), Sherwin-Williams (2.79%) and Home Depot (1.95%). Top losers are Caterpillar (-2.18%), Goldman Sachs (-1.97%) and JPMorgan (-1.20%).

The Dow Jones Index Opens 0.24% Higher

The Hong Kong Dollar touched 7.84 against the USD, the highest since July 2026. Over the past 4 weeks, US Dollar Hong Kong Dollar lost 0.02%, and in the last 12 months, it increased 0.35%.

Hong Kong Dollar Hits 4-week High

US Treasury yields fell sharply after the Treasury announced it would significantly expand its purchases of long-dated government debt. The department said it would at least double the size of liquidity-support buyback operations covering securities with maturities from 10 to 30 years. The move came after 30-year Treasury yields recently climbed to their highest level since 2007, raising concerns about liquidity and market stability. Following the announcement, yields declined across the curve, with the 30-year rate falling as much as 9 basis points to 5.19%. The decision signals that Treasury officials are prepared to intervene if borrowing costs rise too sharply or market liquidity deteriorates. The announcement also came ahead of a $16 billion auction of new 20-year bonds, adding further focus to demand for longer-dated debt. Treasury Secretary Scott Bessent previously described the buyback program as an important tool for addressing market dislocations and supporting liquidity.

Treasury Boosts Long-Term Bond Buybacks

The yield on the 10-year US Treasury note fell to 4.65% on Tuesday after testing 20-month highs of 4.75% in the previous session after the Treasury announced it would double the size of buybacks on long-dated securities. The move would increase the maximum size of operations to at least $4 billion. This was in line with the department's sharp efforts to limit the recent surge in long-dated yields as soaring AI-debt issuance, higher deficit spending, and risks of elevated inflation. Recent measures by the Treasury included a joint intervention with Japan to support the yen by selling euros, as Tokyo's common defense of a weak currency is made of selling long-term Treasury notes and bonds. On top of that, Secretary Bessent called for the Fed to increase its FIMA facility past the threshold of $60 billion, which would allow Japan to access dollar liquidity without selling Treasuries. Meanwhile, minutes by the FOMC due shortly could add insight to the magnitude of a divided Fed.

US 10-Year Yield Falls from 20-Month High

Gold increased to 4451.00 USD/t.oz, the highest since June 2026. Over the past 4 weeks, Gold gained 10.94%, and in the last 12 months, it increased 32.93%.

Gold Hits 10-week High

Cotton increased to 86.77 USd/Lbs, the highest since May 2026. Over the past 4 weeks, Cotton gained 9.81%, and in the last 12 months, it increased 30.34%.

Cotton Hits 13-week High

The Baltic Exchange's dry bulk freight index, which monitors rates for ships carrying dry bulk commodities, retreated for a second session on Wednesday, falling about 1.4% to a fresh low since July 31 at 2,776 points. Larger declines in the bigger-size segments outweighed a mild increase in the smallest one.  The capesize index, which typically transports 150,000-ton cargoes including iron ore and coal, was also down for a second day, dropping by 1% to a new low since July 31 at 4,376 points; and the panamax index, which tracks vessels carrying around 60,000 to 70,000 tons of coal or grain, declined by 2.2% to its lowest since July 31 at 2,107 points. On the other hand, the supramax index rose by 0.2% to a fresh high since July 28 at 1,634 points.

Baltic Dry Index Down for 2nd Day

Futures tracking Canadian equities edged higher on Wednesday after US President Donald Trump paused new tariffs on Canadian goods. Trump announced late Tuesday that he was putting a three-day pause on the new 50% tariffs that were set to take effect on Canadian goods on Wednesday, saying the two countries had reached a deal. The prospect of a deal lent support to Canadian exporters. Oil prices hit a three-week high as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions persisted, supporting energy producers. Gold prices were supported by a weaker dollar as global bond yields stabilized, supporting mining stocks. Meanwhile, financials and the broader index remained under pressure amid energy-driven inflationary pressures stemming from the Middle East conflict and ahead of the release of the US Federal Reserve’s July meeting minutes.

TSX Futures Inch Up as US Tariffs Are Paused

Lithium prices in China rose to over CNY 150,000 per tonne in August, the highest in one month, as signs of growing demand offset the recent respite to supply. Chinese efforts at electrification of its economy drove local governments to pile on projects to develop electricity storage infrastructure in tandem with renewable power generation sources. Such projects were recently headlined by the Medog Hydropower Station and Beijing's announcement that it would double national EV charging capacity to 180 gigawatts by 2027. In turn, industry players highlighted uncertainty in the pace of operations to be restarted by CATL's Jianxiawo mine. Activity in the major lithium source was suspended last year as Beijing refrained from renewing its license, aligned with policymakers' efforts to combat producer deflation. Limiting the rebound, Mineral Resources will restart its Australian Bald Hill lithium mine following an 18-month suspension, while Core Lithium restarted its Finniss project.

Lithium Rebounds to 1-Month High

Futures tracking US equities were mixed on Wednesday, holding losses from the previous session on more pressure from elevated bond yields. Contract for the S&P 500 and Dow were flat, while those for the tech-heavy Nasdaq 100 lost 0.5%. Tech giants were mostly lower premarket as worries of soaring aggregate credit supply lifted borrowing costs in the longer end of curves. Oracle, AMD, Micron, and Marvell were down. Borrowing costs were also lifted by high energy prices as hawkish rhetoric by both the US and Iran prolonged expectations on the suspension of oil from the Persian Gulf. The outlook on interest rates will be further tested after the release of FOMC minutes today. Meanwhile, TJX, Lowe's, and Target fell between 4% and 1% after the retail giants reported their second-quarter results. Conversely, Analog Materials outperformed other semiconductors on its strong guidance. Moderna stock doubled and Merck surged 10% after a trial on their joint vaccine cut recurrence in melanoma.

US Futures Extend Muted Decrease

Retail sales in South Africa rose by 1.6% year-on-year in June 2026, slowing from a downwardly revised 2.2% increase in May and missing market expectations of a 2.3% growth. On a seasonally adjusted monthly basis, retail sales shrank by 0.6%, after a revised flat reading the month before. Retail trade sales increased by 1.7% in the second quarter of 2026 compared with the second quarter of 2025.

South Africa Retail Trade Growth Below Forecasts

The volume of mortgage applications in the US eased by 0.4% on the second week of August, trimming the two-month high rise from the earlier period, according to data compiled by the Mortgage Bankers Association. The muted change was aligned with the constant benchmark mortgage rate of 6.77% in the period, four basis points away from the one-year high in the last week of July, as yields in long-term Treasury bonds held close to a near-two-decade high. Applications to refinance a mortgage, which are sensitive to short-term changes in interest rates, rose by 1.5% from the previous week. In turn, applications for a mortgage to purchase a home, fell by 2%.

US Mortgage Applications Inch Down

US mortgage rates were little changed last week, with the average contract rate for a 30-year fixed-rate mortgage with conforming balances holding at 6.77%. The stability in borrowing costs provided little incentive for either prospective buyers or existing homeowners to act, with total mortgage application volume slipping just 0.4% from the previous week. Although mortgage rates were unchanged during the week, they remained near the upper end of their recent range and moved slightly higher at the start of this week, suggesting housing activity may remain constrained in the near term. Refinance applications increased 2%, although demand remained subdued as elevated rates continued to discourage borrowers, particularly those with larger loan balances. Meanwhile, applications to purchase homes declined 2% as affordability pressures weighed on demand. Higher monthly payments and broader economic uncertainty are prompting some buyers to delay purchases.

US Mortgage Demand Stays Weak as Rates Remain High

Cotton futures traded above 86.3 cents per pound, approaching over a three-month high as crop conditions deteriorate. The latest USDA crop progress report showed conditions worsening to 38% rated good-to-excellent, down from 40% last week and 46% two weeks prior. Deteriorating weather across key producing regions, marked by drought and rising temperatures, raises the risk of lower yields and tighter global supplies, supporting prices. In Brazil, exports surged 19% in July. Meanwhile, El Niño conditions are projected to strengthen through September, keeping temperatures elevated and threatening yields. In India, plantings have largely recovered following normal July rains that offset a dry June, though August and September precipitation remains critical for final output. Still, the rally has left cotton vulnerable to profit-taking as traders lock in gains.

Cotton Extends Gains on Weather Concerns

India’s BSE Sensex closed about 0.4% down at 76,909.7 on Wednesday, the lowest since July 28, marking the fourth straight session of losses. Sentiment remained cautious amid elevated oil prices and global bond yields, while traders braced for the release of FOMC minutes due later in the day. Continued foreign outflows also weighed. Among individual stocks, Power Grid Corporation (-2%), Bajaj Finance (-1.3%), Larsen & Toubro (-1.3%), ITC (-1.2%) and Hindustan Unilever (-1%) posted the biggest losses. On the other hand, HCL Technologies (+1.7%), Eternal (+1.3%), Kotak Mahindra Bank (+1.2%) and Sun Pharmaceutical Industries (+1.2%) were the notable gainers.

Sensex Posts 4th Session of Losses

Venezuela’s economy expanded by 7.14% in the second quarter of 2026, accelerating sharply from 2.51% growth in the previous quarter. The result marks the 21st consecutive quarter of economic expansion, underscoring the continued strengthening of the country’s recovery. Oil activity rebounded strongly, surging 9.1% after contracting 2.1% in the first quarter, while non-oil activity accelerated further, growing 5.79%. Growth was also supported by stronger activity across several key sectors. Construction rebounded sharply, expanding 16.1% after plunging 9.7% in the previous quarter. Financial services surged 26.3%, up from 13.6%, while communications growth accelerated to 7.7% from 4.7%. Transport activity increased 5.6%, compared with 5% previously, and utilities returned to growth, expanding 2.6% after contracting 1% in the first quarter.

Venezuela Economic Growth Picks Up in Q2

Crude oil rose toward $86 per barrel on Wednesday, extending gains for a fourth consecutive session as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz, keeping supply concerns elevated. President Donald Trump said there were no ongoing negotiations with Tehran while confirming that the US naval blockade remains in effect. Shipping risks in Hormuz also remain despite Trump’s claim that the waterway is open and mines have been cleared, with limited traffic still passing through the strategic route. Iranian forces have intensified hostilities over the past week, while eight attacks on vessels transiting Hormuz, including ships linked to the UAE and Saudi Arabia, have been reported so far this month. In the US, industry data showed crude inventories fell by 328,000 barrels last week, following a 9.07 million-barrel increase in the previous week.

Crude Oil Rises for 4th Session

The SENSEX Index dropped 327 points or 0.42 percent on Wednesday to close at 76908 points. Losses were led by Power Grid (-1.98%), Bajaj Finance (-1.29%) and ITC (-1.26%). Offsetting the fall, top gainers were HCL Tech (1.85%), Eternal Limited (1.33%) and Sun Pharmaceuticals (1.27%).

The SENSEX Index Closes 0.42% Lower

Residential property prices increased 5.6% year-on-year in June 2026, easing from a revised 6.1% in the previous month and hitting its lowest reading since January 2024. House price growth eased to 3.9% from 4.7%, while apartment price inflation increased to 7.0% from 6.2%. By region, annual property price growth in Dublin slowed to 4.6% from 5.0%, while prices outside the capital also eased to 6.4% from 7.0%. Within Dublin, the strongest growth was recorded in Dún Laoghaire-Rathdown at 4.8%, down from 6.1% in the previous month, followed by Fingal at 3.2%. Price levels continued to vary across regions, with Dún Laoghaire-Rathdown recording the highest median dwelling price at €682,334, while Longford remained the lowest at €198,000. On a monthly basis, residential property prices rose 0.5% in June, up from a revised 0.4% in the previous month and marking the highest reading since December.

Ireland Property Prices Hit Over 2-Year Low

Riga increased to 943.34 Index Points, the highest since July 2024. Over the past 4 weeks, Latvia Stock Market Index (Riga) gained 2.67%, and in the last 12 months, it increased 1.89%.

Stocks in Latvia Hit 25-month High

Portugal’s current account balance swung to a €303.42 million deficit in June 2026, compared with a €346.64 million surplus in the same month a year earlier. The deterioration was mainly driven by a sharp widening of the goods deficit, which increased by 32.8% to €3,109 million.This was partly offset by a 0.1% increase in the services surplus to €2,799 millionMeanwhile, the secondary income surplus widened by 13.2% to €435 million, supported by a 2.5% rise in remittances to €375 million. The primary income deficit narrowed by 13% to €428 million.

Portugal Current Account Swings to Deficit in June

South Africa’s 10-year government bond yield was around 8.67%, down slightly from an over two-week high of 8.71% hit on August 18. Traders digested the latest domestic inflation data while awaiting the FOMC minutes for further guidance on the global monetary policy outlook. South Africa’s headline consumer inflation slowed to 4.3% in July from 5% in June, ending four months of acceleration and coming below the expected 4.5%. However, the core inflation rate accelerated slightly to 4.2%, the highest since July 2024, from 4.1% previously. The mixed inflation picture supports expectations that the SARB will keep rates unchanged at its September 23 meeting while monitoring the potential impact of the Iran conflict. The central bank left rates unchanged at 7% last month, pointing to a more favorable inflation outlook and expectations of a return to the 3% target.

South Africa 10-Year Bond Yield Eases Slightly

Malta’s annual inflation rate edged up to 2.1% in July 2026, following a more than one-year low of 2.0% in the previous month. Prices increased at a faster pace in restaurants and hotels (3.3% vs 3.0% in June), alcoholic beverages and tobacco (1.8% vs 1.6%), housing and utilities (3.0% vs 2.8%), furnishings and household equipment (2.9% vs 2.6%), insurance and financial services (1.0% vs 0.3%), and miscellaneous goods and services (3.7% vs 2.9%). Deflation also eased for clothing and footwear (-3.6% vs -3.9%). Meanwhile, price growth slowed for food and non-alcoholic beverages (1.7% vs 1.8%), transportation (1.9% vs 2.6%), health (2.8% vs 3.0%), and recreation and culture (3.2% vs 3.4%), while it remained steady for education (at 3.2%). On a monthly basis, consumer prices rose 0.5% in July, following a 1.1% increase in the previous month.

Malta Inflation Edges Higher in July

Bulgaria’s current account shifted to a deficit of EUR 488.3 million in June 2026 from a surplus of EUR 199.8 million in the same month a year earlier. The deterioration was driven by a wider goods deficit of EUR 806.1 million, compared with EUR 490.3 million a year earlier, alongside a narrower services surplus of EUR 662.3 million versus EUR 1,061.7 million, reflecting weaker manufacturing and transportation services. As a result, the combined goods and services balance swung to a deficit of EUR 143.7 million from a surplus of EUR 571.4 million. Meanwhile, the primary income deficit narrowed slightly to EUR 454.5 million from EUR 456.1 million, while the secondary income surplus increased to EUR 109.9 million from EUR 84.5 million.

Bulgaria Current Account Swings to Deficit in June

Eurozone annual inflation accelerated to 2.9% in July 2026, in line with flash estimates, up from 2.8% in June and remaining well above the European Central Bank's 2.0% target, final data showed. The increase was largely driven by a renewed surge in energy prices, with energy inflation accelerating to 10.3% from 8.5% as hostilities between the US and Iran resumed. Underlying price pressures also strengthened. Services inflation edged up to 3.3% from 3.2%, while inflation for non-energy industrial goods rose to 0.9% from 0.7%. In contrast, food, alcohol, and tobacco inflation eased to 1.2% from 1.5%. The core inflation rate, which excludes energy and food, increased to 2.5% from 2.4%. Among the euro area's largest economies, inflation accelerated in Germany (2.8% vs 2.4%), France (2.4% vs 2.0%), Spain (3.9% vs 3.6%), and the Netherlands (3% vs 2.5%), while easing slightly in Italy (2.9% vs 3.0%).

Eurozone Inflation Confirmed at 2.9% in July

The South African rand traded around 16.2 per USD, holding near its highest since early March, supported by a subdued dollar and rising prices of gold. Meanwhile, the latest domestic inflation figures signaled a moderation in price pressures. South Africa's annual inflation rate decelerated to 4.3% in July from a two-year high of 5% in June, below the expected 4.5%. However, the core measure quickened for the fifth month to 4.2%, the highest since July 2024, up from 4.1% in June.

South African Rand Holds Firm

The Euro Area's current account surplus widened to €46.9 billion in June 2026 from €37.6 billion a year earlier. The primary income surplus, which includes flows such as dividends, wages and direct investment, rose to €15.3 billion from €5 billion. Also, the services surplus rose to €24.1 billion from 22.6 billion. On the other hand, the goods surplus narrowed to €21.5 billion from €23.6 billion and the secondary income deficit increased to €14.1 billion from €13.7 billion. The seasonally adjusted current account surplus increased to €35.1 billion in June from €25.8 billion a month earlier, above market expectations of €22.1 billion.

Eurozone Current Account Surplus Widens in June

The Central Bank of Iceland raised its key policy rate by 25bps to 8% in August 2026, marking the third consecutive meeting with a 25bp increase. The decision reflected continued uncertainty surrounding global developments and the domestic labour market. Headline inflation rose above 5% in 2026, reaching 5.3% in July, driven by higher public levies and price increases related to the war in the Middle East. Underlying inflation, however, has remained relatively stable and has started to ease, in line with growing slack in the economy. While inflation is expected to rise further in the coming months, the Central Bank anticipates a relatively rapid moderation in 2027. Policymakers judged the latest hike appropriate to ensure that monetary policy remains sufficiently restrictive, while signalling that future decisions will depend on developments in economic activity, inflation, and inflation expectations, which remain elevated.

Central Bank of Iceland Raises Key Rate to 8%

The Hang Seng Index was little changed to close at 25,495 on Wednesday, recovering from an earlier decline as HKEX shares gained 1.6% to HK$411.40 following the exchange operator’s strong first-half results. Revenue rose 19% year-on-year, attributable profit increased 24%, and the interim dividend was lifted 24%, providing support to market sentiment. At the same time, Hong Kong and China Gas climbed after posting a 23% increase in first-half profit, helping support the broader market. Still, gains were capped by a cautious global backdrop, with investors digesting a selloff in technology shares, elevated US Treasury yields, higher oil prices, and renewed Middle East tensions that weighed on risk appetite across Asian markets. Notable movers included Xiaomi (5.1%), Tencent (0.9%), and Meituan (1.9%). In contrast, SMIC and China Unicom declined 4.6% and 12.8% respectively.

Hong Kong Stocks Recover From Early Losses

The British pound strengthened to around $1.356, remaining close to a three-month high as investors assessed the latest UK inflation and labour-market data. Consumer inflation accelerated to 2.9% in July from 2.6% in June, matching expectations, while core inflation remained unchanged at 2.6%. The figures prompted traders to modestly reduce expectations for a Bank of England rate hike later this year. Earlier labour-market data showed unemployment holding at 4.9%, above forecasts, while payroll employment declined by 86,000 year-on-year. Regular earnings growth remained relatively firm at 3.5%. Despite signs of resilience in the UK economy, elevated oil prices and uncertainty surrounding the US-Iran conflict continue to pose risks to the inflation outlook. Meanwhile, the dollar index remained near multi-month lows, providing additional support to sterling. Softer US economic data led investors to scale back expectations for further Federal Reserve tightening, weighing on the dollar.

Sterling Firms at 3-Month High

Italy’s current account surplus amounted to EUR 5,838.8 million in June 2026, narrowing from EUR 6,639.4 million in the same month a year earlier, as surpluses in goods, services and primary income declined. The goods surplus fell to EUR 4,852.4 million from EUR 5,625.6 million, while the services surplus edged down to EUR 1,539.4 million from EUR 1,558.0 million. The primary income surplus also decreased to EUR 735.6 million from EUR 761.1 million. Meanwhile, the secondary income deficit narrowed slightly to EUR 1,288.7 million from EUR 1,305.2 million last year.

Italy Current Account Surplus Narrows in June

MSE increased to 4220.00 Index Points, the highest since July 2024. Over the past 4 weeks, Malta Stock Exchange gained 1.94%, and in the last 12 months, it increased 9.19%.

Stocks in Malta Hit 25-month High

The UK 10-year gilt yield eased to around 5.05% as investors assessed the latest inflation and labour-market data for clues on the Bank of England’s policy outlook. Headline CPI rose to 2.9% year-on-year in July from 2.6% in June, matching market expectations, while core inflation remained unchanged at 2.6%. The figures were broadly in line with forecasts and prompted traders to modestly reduce bets on a rate increase before year-end. Recent labour data also pointed to a cooling jobs market, with unemployment unexpectedly holding at 4.9% and payroll employment declining by 86,000 year-on-year. Regular earnings growth was slightly stronger than anticipated at 3.5%. While the UK economy has shown some resilience, elevated oil prices and fading hopes of a US-Iran agreement continue to pose inflation risks. Markets still price at least one BoE hike this year, although most economists expect rates to remain unchanged.

UK 10-Year Gilt Yield Edges Down After Inflation Data

South Africa's annual inflation rate eased to 4.3% in July 2026 from a two-year high of 5% in the prior month and below analysts' estimates of 4.5%. This marked the first slowdown in five months, driven mainly by softer prices for food and non-alcoholic beverages (0.9% vs 1.6% in June), housing & utilities (5.2% vs 5.5%), and transportation (8.9% vs 12.7%). On a monthly basis, the CPI rose by 0.2% in July, down from a 0.7% increase in the month before.

South Africa Inflation Rate Cools More than Anticipated

Brent crude climbed toward $92 per barrel on Wednesday, extending gains for a fourth consecutive session as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz, keeping supply concerns elevated. President Donald Trump said there were no ongoing negotiations with Tehran while confirming that the US naval blockade remains in effect. Shipping risks in Hormuz also remain despite Trump’s claim that the waterway is open and mines have been cleared, with limited traffic still passing through the strategic route. Iranian forces have intensified hostilities over the past week, while eight attacks on vessels transiting Hormuz, including ships linked to the UAE and Saudi Arabia, have been reported so far this month. In the US, industry data showed crude inventories fell by 328,000 barrels last week, following a 9.07 million-barrel increase in the previous week.

Brent Rises for 4th Session

The FTSE MIB fell 0.2% to below 53,000 in early trading on Wednesday, extending losses from the previous session, as elevated global bond yields and higher oil prices continue to weigh on risk appetite. The index remained under pressure as long-term government bond yields climbed to fresh highs. Tensions in the Middle East has added to market concerns, raising the risk of prolonged energy-supply disruptions that could push inflation higher. Shares of STMicroelectronics dropped further, falling 1.2%, as tech stocks remained particularly vulnerable to rising yields. Prysmian dropped 1.1%, while banks also traded lower, with UniCredit down 1.0%, BPER Banca 0.8%, and FinecoBank 1.5%.

FTSE MIB Falls for 2nd Day

The FTSE 100 traded around the flatline on Wednesday as gains in commodity-related stocks were offset by weakness in banking shares. Lenders came under pressure as investors slightly reduced expectations for a Bank of England rate hike later this year. UK inflation accelerated to 2.9% year-on-year in July from 2.6% in June, in line with market expectations, although traders viewed the increase as largely anticipated due to higher energy costs. The data prompted a modest reduction in rate-hike bets. Smith & Nephew was among the biggest individual fallers, declining as much as 3.7% after CFO John Rogers announced his resignation to take up a position in the US. Meanwhile, energy and mining stocks provided support. BP gained around 1%, while Shell rose 0.6%. Anglo American and Rio Tinto added approximately 0.7% each, and Glencore advanced 0.5%.

FTSE 100 Trades Cautiously After Inflation

The DAX 40 hovered near the flatline around 26,130 on Wednesday, as caution prevailed amid Middle East uncertainty and ahead of the release of FOMC minutes later in the day. Weakness in the technology sector also weighed on sentiment. Tech stocks and retailers saw increased pressure, partly offset by gains in telecom, chemical companies and industrials.

DAX on Cautious Note

The Indonesian rupiah was largely unchanged on Wednesday afternoon, hovering just below IDR 17,850 per U.S. dollar after Bank Indonesia kept its key rate unchanged at 5.75% for a second straight month, in line with expectations. It was the first policy decision under acting Governor Destry Damayanti, who assumed the role following Perry Warjiyo’s abrupt departure last month. So far this year, BI has lifted rates by a cumulative 100bps to bolster the currency and investor confidence. Destry emphasised that the pause reflects efforts to balance currency stability, inflation control, and growth. She also noted that forex reserves remain more than enough to safeguard the rupiah. In the near term, the central bank is expected to lean more on its broader toolkit, forex intervention and high-yielding central bank securities, rather than rate moves alone. Globally, the U.S. dollar index eased after, with investors awaiting the Fed's July meeting minutes for clues on the policy outlook.

Rupiah Steady as Bank Indonesia Holds Rates

The CAC 40 rose 0.4% to 8,540 on Wednesday, snapping a six-session losing streak, even as sentiment remained cautious amid elevated oil prices and surging bond yields. Oil prices stayed firm after President Donald Trump said no talks were underway with Iran while maintaining that the Strait of Hormuz remained open, keeping geopolitical risks in focus. Meanwhile, France’s 10-year OAT yield recently climbed above 4.10%, its highest level since October 2008, as a global bond selloff intensified concerns over inflation and borrowing costs. Among individual stocks, gains were led by L'Oréal (0.5%), TotalEnergies (1.3%), Saint-Gobain (1.2%), and Stellantis (1.9%). Financial stocks underperformed, with Crédit Agricole falling 1.6%, Société Générale losing 1.1%, and BNP Paribas shedding 1%. Elsewhere, STMicroelectronics declined 1.2%, tracking weakness in the global technology sector.

French Stocks Break 6-Session Losing Run

Indonesia's loan growth increased by 13.58% year-on-year in July 2026, accelerating from a 12.67% rise in the previous month and marking the strongest pace since August 2014. The acceleration was supported by accommodative macroprudential policies, continuously pursued through the optimization of the Macroprudential Liquidity Incentive (KLM) policy to encourage increased bank lending and financing to priority sectors. As of the first week of August 2026, KLM incentives obtained by banks totaled IDR 446.5 trillion. The growth was also supported by the banking sector's high Capital Adequacy Ratio, which stood at 23.70% in June 2026.

Indonesia Loan Growth Highest Since 2014

European shares were broadly flat on Wednesday as investors remained cautious amid uncertainty in the Middle East and awaited the minutes of the Federal Reserve’s July meeting for further guidance on interest rates. Gains in basic resources stocks, supported by firmer gold prices, provided some stability, with the sector rising around 0.6%. In contrast, technology stocks were the weakest performers, falling about 0.4% as higher bond yields weighed on growth-sensitive shares. Semiconductor stocks also came under pressure after reports that Anthropic’s annual revenue run rate reached $65 billion, falling short of some elevated market expectations. Soitec dropped 4.4%, while Nordic Semiconductor and Scout24 lost more than 2% each. Geopolitical tensions remained in focus after President Donald Trump said there were no ongoing talks with Iran and claimed the Strait of Hormuz was open. Meanwhile, UK inflation accelerated to 2.9% in July from 2.6% in June, exceeding expectations.

European Stocks Little Changed on Wednesday

The yield on India’s 10-year G-Sec weakened to around 6.8%, retreating from recent gains as easing US Treasury yields and bargain buying after a two-day selloff supported demand for government bonds. The US 10-year Treasury yield eased to 4.686%, offering some relief to Indian debt, while foreign investors continued to show demand, buying $3.04 billion of Indian bonds in July, their second consecutive monthly inflow after India scrapped capital gains tax on interest and sales of government securities for overseas investors. The decline in yields was limited by elevated oil prices and renewed geopolitical risks, with Brent crude rising to around $92 a barrel as uncertainty over the Strait of Hormuz persisted. The benchmark bond yield had climbed to a two-week high on Tuesday following the RBI’s early withdrawal of its discounted forex swap facility for banks hedging diaspora deposits. Investors were also awaiting the RBI’s policy minutes for fresh interest-rate cues.

India 10Y Yield Eases From Two-Week High

Poland’s current consumer confidence indicator fell to -11.3 in August 2026, worsening from -10.2 in the previous month. Evaluations of current major purchases deteriorated the most (-4.9 vs -1.6), while expectations for the country’s future economic situation also weakened (-19.3 vs -17.3). Expectations for households’ financial situation over the next 12 months declined (-3.1 vs -2.7), as did assessments of the country’s current economic situation (-23.8 vs -23.4). Meanwhile, households’ financial situation over the last 12 months improved (-5.4 vs -6.0). The leading consumer confidence indicator also deteriorated, falling to -7.6 from -7.3 in July, with expectations for future savings (-14.1 vs 16.3) and the country’s future economic situation (-19.3 vs -17.3) weakening, while expectations for unemployment improved (-22.2 vs -25.3).

Polish Consumer Morale Weakens in August

Georgia’s trade deficit narrowed to USD 909.1 million in July 2026 from USD 998.8 million in the same month a year earlier. Exports climbed 30% year-on-year to USD 793.9 million, while imports increased 5.8% to USD 1,703 million. In the January-July period, exports rose 21.6% to USD 4,670.2 million, driven by higher sales of oil and petroleum products (1,052%) and copper ores and concentrates (310.8%), while passenger cars declined 21.5%, though they remained the country’s top export product. Exports rose most to China (166.4%), Russia (6.2%), and Armenia (31.2%). Meanwhile, imports increased 2.4% to USD 10,849 million, supported by higher purchases of oil and petroleum products (32.7%) and medications (6.5%), while passenger cars fell 12.8%, though they also remained the most imported product. Imports rose most from China (22.3%), Russia (26.5%), and Turkey (5%). The country’s trade deficit for the January-July period narrowed to USD 6,178.9 million from USD 6,756.4 million last year.

Georgia Trade Gap Narrows in July

UK natural gas prices held recent gains, hovering above 157 pence per therm on Wednesday, as concerns over a potential winter supply crunch intensified amid a lack of progress on a deal to reopen the Strait of Hormuz. President Donald Trump said that no talks with Iran are currently taking place or scheduled and that the US naval blockade remains in full force. He added that the strait is open and operating, in contrast to Iran’s position that the key waterway will remain closed until Washington meets its conditions. Traffic through the waterway has fallen to a standstill, stranding Qatari LNG tankers and delaying deliveries to Europe. The reduced inflow, combined with summer heatwaves that have boosted demand for gas-fired power generation for cooling, is slowing the seasonal buildup of gas inventories. As a result, traders are increasingly concerned that Europe could enter the winter heating season with insufficient reserves, keeping upward pressure on gas prices.

UK Natural Gas Prices Hold Advance

The FTSE 100 Index is up by 5 points or 0.05 percent on Wednesday. Top gainers are Melrose (1.19%), Rio Tinto (1.08%) and BT (0.99%). Biggest losses came from Smith & Nephew (-3.60%), Entain (-1.25%) and Land Securities (-1.02%).

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