Public Markets 3 Days

Last updated: August 3, 2026, 2:30 AM ET

Treasury Yields and Currency Markets

U.S. Treasury yields declined in Asian trading as oil prices fell, influenced by an improved outlook for Middle Eastern diplomacy. The U.S. Treasury may be utilizing euros instead of dollars to finance its yen purchases, a strategy aimed at preventing the weakening of its own currency and maintaining confidence in its strong dollar policy. HSBC Global Research suggested that further coordinated foreign exchange intervention between the U.S. and Japan could occur. The dollar weakened against the yen as authorities signaled that intervention to support the Japanese currency might be imminent. The U.S. joined Japan in orchestrating one of the most significant rebounds for the yen in years, reversing a long-term slide that had fueled inflation in Japan and impacted global markets. Treasury Secretary Bessent's support for a Federal Reserve facility that Japan can use to bolster the yen offers the advantage of protecting the U.S. bond market from excessive sales.

Emerging Markets and Asian Equities

Emerging-market equities experienced a decline, marking the first drop in three days, primarily driven by South Korean chipmakers that are unwinding some of the record gains they achieved on Friday. South Korean stocks slipped as heavyweight chipmakers faced selloffs following Friday's record gains, while investors reversed leveraged trades. Morgan Stanley upgraded South Korean stocks to an overweight rating, suggesting that the recent "leverage washout" presents investors with a more favorable entry point into the artificial intelligence trade and the industrial super-cycle. Fanuc Corp. plummeted by the most in four decades after the factory robot manufacturer raised its profit outlook by less than anticipated, intensifying concerns about soaring material prices. Japan’s Orix Corp. has agreed to acquire Aer Fin Ltd., a UK-based airplane parts company, in a deal valued at approximately ¥100 billion ($640 , including debt, according to individuals familiar with the matter. Japanese stocks indicated a lower opening as traders remained vigilant for further yen intervention following coordinated efforts by Tokyo and New York to support the currency. Japanese stocks fell 1.4%, pulled down by electronics and auto sectors, following sharp gains on Friday as uncertainty surrounding the Iran conflict persisted. China's manufacturing activity slowed in July, particularly for export-oriented firms, mirroring the trend seen in an official gauge, according to a private survey. Chinese government bond futures commenced trading in Hong Kong on Monday, representing the third attempt by authorities to utilize this hedging tool to further liberalize the country's debt market.

Commodities and Corporate Deals

Oil prices fell in early Asian trade amid hopes of a potential U.S.-Iran deal that could mitigate supply disruptions. Oil futures declined 1.3% in early Asian trade as OPEC+ signaled potential output increases. Oil prices plummeted as investors digested a pause in fighting in the Iran conflict, marking the markets' first moves since President Trump announced late Saturday that he had halted a U.S. assault on Iran. Iron ore sank to its lowest level in over a year due to concerns surrounding a major physical trader of the commodity, which exacerbated existing market softness linked to a challenging demand outlook. Turkey reached an agreement with Iraq to extend an expired oil pipeline deal by one year and increase flows through it, ensuring supply via an export route that bypasses the Strait of Hormuz. Exxon Mobil and Chevron channeled substantial profits into debt reduction rather than significant increases in buybacks, reflecting Big Oil's caution regarding the longevity of war-driven price rallies.

Pharmaceuticals and Aerospace

AstraZeneca and Bristol Myers Squibb are reportedly in discussions regarding a potential $400 billion tie-up. Japan’s Orix Corp. has agreed to acquire Aer Fin Ltd., a UK-based airplane parts company, in a deal worth approximately ¥100 billion ($640 , including debt, according to people familiar with the matter.

Automotive and Technology

Detroit carmakers experienced a strong second quarter, while their European counterparts remain downbeat, indicating that U.S. gas guzzlers are outperforming Europe's electric vehicles in the latest round of automotive competition. NXP is reportedly in talks to acquire a designer of camera chips for self-driving cars valued at over $3 billion, a move that would align with the ongoing consolidation wave in the semiconductor industry as companies position themselves for the AI revolution. Apple shares fell as its AI build-out impacted supply chains and growth, with CEO Tim Cook stating that the effect of memory prices is expected to worsen. Wall Street thinks it knows how tech giants will make AI pay, and investors are increasingly accepting the idea that Big Tech's investments in AI can be profitable, provided they are linked to cloud-computing businesses.

Financial Services and Banking

Malaysia’s Maybank has agreed to acquire Ageas SA’s minority stake in Etiqa, which would grant Malaysia’s largest lender full ownership of the Southeast Asian insurer. Monte dei Paschi is exploring a takeover of Banco BPM following the collapse of "merger of equals" discussions, with the MPS chief executive considering an approach to Banco BPM’s largest shareholder, Crédit Agricole. French banks are signaling a willingness to provide campaign loans to French political parties, contingent on the availability of government guarantees, which could potentially boost election financing for figures like Le Pen.

Retail and Consumer Goods

McDonald’s signature burger offers economic insights, though not necessarily related to purchasing power parity. AB InBev is shifting marketing funds to other brands as collaborations with celebrities and cage fighting have failed to reverse a decline in Bud Light sales.

Energy Sector

A regional environmental regulator in Australia has recommended stricter licensing conditions for two liquefied natural gas export facilities operated by Inpex Corp. and Santos Ltd.

Global Markets and Economic Indicators

Emerging-market equities fell for the first time in three days, led by South Korean chipmakers unwinding some of the record gains they made on Friday. China's factory activity slowed in July for export-oriented firms, according to a private survey, aligning with an official gauge. India's initial public offering boom is cooling, with proceeds down by a fifth from a year earlier as companies reduce deal sizes, accept lower valuations, and delay listings, raising questions about sustainability. Zepto has delayed its IPO, signaling a loss of momentum in India's listing boom, with other companies like Manipal Health, Indo-MIM, and Juniper Green Energy having already reduced offer sizes to facilitate their deals. India's equity markets are set to align their closing auctions with major global peers, a change that could impact the returns of arbitrage funds. Traders bet that the Reserve Bank of India will maintain its interest rates and that a cash boost will steepen India's yield curve, with short-dated bonds expected to outperform longer-duration debt.

Geopolitical and Regulatory Developments

The U.S. Treasury may be using euros rather than dollars to fund its yen purchases to avoid weakening its own currency and casting doubt on its strong greenback policy, according to strategists. More rounds of coordinated U.S.-Japan FX intervention could occur, according to HSBC Global Investment Research. The dollar weakened against the yen as authorities signaled that an intervention to support the Japanese currency could be imminent. The U.S. joined Japan in engineering one of the most notable rebounds in the yen since the currency began its years-long slide, a decline that has stoked inflation in the Asian nation and rippled through global markets. Treasury Secretary Bessent’s championing of a Federal Reserve facility that Japan can use to bolster the yen comes with the benefit of protecting the U.S. bond market from excessive sales. The U.S. Treasury has limited liquid resources for further coordinated currency intervention alongside Japan, though its capacity could be significantly expanded if officials resort to more extreme measures, according to J.P. Morgan. The U.S. Treasury may be using euros rather than dollars to fund its yen purchases to avoid weakening its own currency and casting doubt on its strong greenback policy, according to strategists. The U.S. joined Japan in engineering one of the most notable rebounds in the yen since the currency began its years-long slide, a decline that has stoked inflation in the Asian nation and rippled through global markets.

Corporate Earnings and Valuations

Big Tech earnings are driving valuations in opposite directions, with reports from tech giants causing significant gains and losses, while the Fed-fueled bond selloff adds to market pressures. SpaceX is scheduled to hold its first earnings call, Flutter is migrating its listing to New York, and inflation updates from China and India are expected. S&P 500 companies are on track for their strongest earnings in five years, reporting "rock solid" profits as consumers face higher costs. Morgan Stanley's underwriting of SpaceX and other new issues generated $74 billion in wealth management assets in the second quarter, marking a successful period for the bank's IPO after-party.

Market Volatility and Investment Strategies

CXMT Corp. represents one of Asia's most polarizing stocks, with analyst opinions varying widely, highlighting the key arguments driving volatility in the memory-chip stock trade. Leveraged ETFs offer the potential to double or triple the daily returns of an individual stock, are notoriously risky for investors who purchase them. Bond investors, including Brandywine Global Investment Management and Wellington Management, believe the risk of a deeper Treasury rout is increasing as Federal Reserve Chairman Kevin Warsh keeps investors uncertain about future policy. Wall Street is learning to embrace blockchain technology, with financial companies hoping to modernize markets, though systemic risks persist.

Regulatory and Legal Developments

Ofcom's chair has initiated a review of the regulator to enhance its ability to oversee Big Tech, with Ian Cheshire telling the Financial Times that the watchdog will require "more resources" to enforce online safety rules as it takes on a broader mandate. Changes are being made to the two most frequently cited claims regarding the NHS England Palantir platform data following staff concerns, as scrutiny grows over the U.S. tech company's contract. The ‘Trump effect’ is impacting corporate gender goals, with changes at the Australian Securities Exchange being the latest indication of a global rollback of diversity policies. Todd Blanche's confirmation as attorney general is being delayed due to concerns about a planned $1.8 billion fund for Trump allies and the president's immunity from tax scrutiny. It was the latest sign that the president is doubling down on his fight for aspects of a deal that brings him significant benefits, even though these have jeopardized the confirmation of his pick for attorney general.

Economic Outlook and Trends

The ultra-rich are relocating to Miami, bringing their wealth managers with them, attracted by tax incentives and other benefits, creating a demand for space for the firms that manage their finances. Australia's resilient earnings outlook may encounter challenges in the August results season as the country's largest companies report on how they are navigating a fragile economy. Hungary is bracing