Public Markets 3 Days

Last updated: August 7, 2026, 5:33 AM ET

Central Banks and Rates

The market's focus is squarely on Friday's U.S. jobs report, which could cool growing expectations the Federal Reserve raises interest rates at its next meeting in September. The DXY dollar index traded steady and the currency could rise if the nonfarm payrolls prove more positive than expected. Treasury yields ticked down after weaker-than-expected private payrolls data, but job-cut plans remained calm in July alongside low weekly jobless-claims figures. The Federal Reserve's rarely used Fima Repo Facility went unused for an eighth straight week, suggesting Japan didn't use the tool in its latest effort to support the yen. With concern the Federal Reserve is dragging its feet on inflation, Barclays and HSBC say inflation-protected bonds hold appeal. The U.S. Treasury retained its previous guidance for future debt issuance, signaling no change in auction sizes well into 2027. Bond dealers expect the U.S. will avoid signaling auction increases for now, despite needing to increase borrowing programs next year. Treasury yields fell as oil prices dropped on Hormuz deal hopes, curbing expectations for more than one Fed rate hike.

Oil and Geopolitics

Oil prices extended gains as markets waited for the outcome of talks about the Strait of Hormuz, with Iran saying it has reached an agreement with Oman on the critical shipping route. Treasury Secretary Scott Bessent said the U.S. could reach a deal with Iran to reopen the Strait of Hormuz "today or tomorrow," which sent crude futures falling to a three-week low. The potential deal would allow Tehran to retain a degree of control over the chokepoint, with Qatar reporting progress in diplomatic discussions. Oil extended gains after a report that Iran attacked "hostile targets" in the Strait of Hormuz, with Tehran seeking to bar US ships from the critical waterway. The Houthis threatened to expand Red Sea attacks and claimed a strike on a Saudi tanker, vowing to close "all access routes" to Saudi oil shipments. US imports of Saudi Arabian oil dropped to zero in July, the first time that's happened for an entire month since 1985. OPEC's crude oil production recouped some more of its wartime losses with gains in Kuwait, Saudi Arabia and Iraq. Russia's oil exports slipped as a lull in drone strikes boosted refining, with Ukraine's switch to attacking tankers letting plants process more crude.

Yen Intervention and FX

The yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains, fueling speculation among traders that authorities may step into the market again. Japan confirmed it intervened in the currency market three times during the spring Golden Week holiday, going beyond its recent twin-punch playbook. The coordinated intervention allowed Japan to support its currency without selling off its U.S. debt holdings, according to Treasury Secretary Scott Bessent. US support for Japan's efforts to prop up the yen is unlikely to damage the dollar's status as the most dominant reserve currency, according to Goldman Sachs. The way the intervention is being done should make us worry that the Federal Reserve is being roped into easing monetary conditions, writes the WSJ. Bank of America revised expectations, saying the yen will strengthen about 6% against the dollar by year-end following the coordinated intervention. The South Korean won rose to the strongest level in almost 10 months as exporters converted their dollar earnings into the local currency. The dollar finished its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East.

Company Earnings and Deals

WPP shares soared the most since its 1995 initial public offering after the advertising agency reported its turnaround efforts are gaining momentum. The company said revenue less pass-through costs, a closely-watched metric, fell less sharply last quarter thanks to a recovery in its media-buying operations, and shares jumped more than 25% as the overhaul begins to bear fruit. Allianz SE generated record second-quarter profit on better results in its insurance and asset management businesses, booking a 10.6% rise in group operating profit. The German insurer also agreed to buy the asset management unit of Singapore's United Overseas Bank, marking its second major deal in recent days. Glencore reported a steep jump in profits after a surge in the price of its most important commodities and its trading unit had one of its best ever periods. The miner also plans a secondary listing in Australia after long complaining its London shares are undervalued. SoftBank Group reported a smaller-than-expected decline in quarterly net income, helped by a rally in its chip-stock holdings, including an $8bn gain on its Intel stake. The Japanese technology investment company has vowed to become a leading builder of AI data centers and a major investor in AI-powered robotics.

SpaceX and AI

SpaceX shares rose on Thursday as investors digested the release of as many as 911.5 million shares worth about $100 billion from lock-up agreements that had prevented insiders from selling them. However, the Elon Musk-led rocket company spent $15.8 billion on AI projects in the second quarter and doesn't plan to slow down, causing shares to sink on the lavish spending plans. The company's revenue soared 92% on rocketing cloud and Starlink demand, but the ballooning AI bill unnerved investors. Some analysts are raising an eyebrow while retail sees an "insane opportunity" to buy, as SpaceX true believers propel shares past the end of the epic lockup. Google has consolidated control as DeepMind's Hassabis steps aside, with the London lab's scientific culture giving way to urgency to build AI products. Four top Google AI researchers, led by Jeff Dean, have formed a new start-up with the backing of Google. Alphabet Inc. has received about $115 billion of orders for its latest jumbo bond sale, signaling renewed investor appetite for debt tied to the artificial intelligence boom.

Asia-Pacific Markets

India's Life Insurance Corp. share sale was expanded to raise $3.3 billion after strong demand, with the government surprising the market by how much it raised and the pace of the deal. State Bank of India reported better-than-expected profit in its first quarter, as the country's biggest lender benefitted from strong credit growth. DBS Group Holdings delivered better-than-expected second-quarter profit that was powered by a surge in wealth-led fee income, and raised its 2026 guidance. Honda Motor Co. raised its profit outlook 30% after the motorcycle business, a weak yen and US demand for hybrids lifted quarterly results to a record. Toyota also raised its annual earnings forecasts, citing a weaker yen and a smaller impact from the Iran war, while announcing a more than $6 billion buyback. Fujifilm Holdings shares fell by the most on record after the Japanese company reported weaker-than-projected quarterly results. SK Hynix suffered its second 30% pre-market flash crash on Nextrade, raising fresh questions about trading volatility on South Korea's alternative stock exchange. The chip giant's shares later climbed on speculation about buybacks and a broader shareholder return plan.

European Markets

European shares advanced for a fourth straight day as strong earnings boosted sentiment, with WPP Plc leading gains in the media sector. The Europe-wide Stoxx 600 index was up, led by consumer-facing stocks and healthcare, as corporate earnings drove indexes higher in early trade. Siemens Energy AG reported record high orders on U.S. data-center demand and surging global demand for electricity, with profit tripling as it expects to achieve the higher end of its fiscal-year profit margin guidance. Commerzbank AG unveiled a fresh €1.2 billion share buyback as CEO Bettina Orlopp seeks to demonstrate that her strategy delivers strong returns while Italian rival UniCredit prepares to make a move. The CEO appealed for constructive dialogue with UniCredit after the Italian bank achieved a near majority stake in its German rival. Deutsche Telekom raised its full-year buyback program by up to $3.5 billion after posting higher revenue in the second quarter. Swiss Re AG's first-half profit beat estimates as the re-insurer saw all key business units perform in line with targets, while the firm announced a fresh round of cost cuts.

Commodities and Gold

Gold was on track for its biggest gain in more than six months as dip-buyers supported prices above a key technical level while looking past flare-ups in the Strait of Hormuz. China added more gold to its reserves last month, pushing a buying streak toward the two-year mark as prices built support above $4,000 an ounce. The People's Bank of China is also stockpiling more gold in Hong Kong, according to people familiar with the matter, in a move that's likely to support the city's push to become a major bullion-trading hub. Copper headed for a record close in London after strong gains fueled by signs of tighter short-term supply across the global market, with Comex futures also climbing to a record high on tariff speculation. Global food prices edged higher in July to the highest in more than three years as renewed concerns over key grain export corridors compounded adverse weather across major growing regions. The price of a key Chinese steel product has dropped to the lowest in almost a decade as a prolonged property downturn sapped construction demand and swelled inventories. Nickel declined to the lowest level since mid-July on renewed speculation that Indonesia will grant a higher ore-production quota to one of the country's largest mines.

Global Economy and Trade

China's factories are finding eager buyers abroad even as weak consumer spending and a prolonged property slump weigh on growth at home, with the export boom rolling on despite trade backlash. No longer just a producer of cheap consumer goods, China is exporting more high-value items that underpin global manufacturing. Philippine economic growth dramatically slowed in the second quarter, defying expectations of a pickup, as the protracted Middle East conflict stokes inflation and drags down consumer spending. India's foreign exchange reserves are expected to swell to a near-record high within weeks, driven by stronger capital inflows following a series of central bank measures. The central bank's rare push to repatriate savings has drawn stronger than expected inflows, with India raising $40bn from its diaspora to support the sagging rupee. The U.S. trade deficit dipped in June as imports and exports both declined, retreating from a busy month in May. The Rhine River's record low water levels are disrupting supply chains, adding costs and presenting fresh risks to growth in the heart of Europe.