Public Markets 8 Hours

Last updated: August 25, 2026, 10:16 AM ET

Equities

US equity futures pointed higher as Treasury yields steadied following Treasury Secretary Scott Bessent’s speech on Iran sanctions, with the dollar strengthening to a one-week high. European stocks advanced as a pullback in crude offered relief from inflation concerns, with Siemens Energy among the gainers, while UK equities extended their best winning streak since May. In Asia, Japan’s Nikkei dropped 0.8% on tech declines, though European chip stocks edged higher following Monday’s rout.

Nvidia has fallen for seven consecutive sessions, its longest losing streak since 2022, as bulls get punished in the run-up to earnings. Software stocks face an earnings gut check after an 18% summer rally, with investors betting the struggling sector has found its footing. Infrastructure stocks rallied on defense spending pushes and AI-related hedging demand. South Korea’s leveraged ETFs tied to chipmakers saw nearly $1 billion in outflows this month as AI fervor cooled and regulators tightened measures.

Northam Platinum Holdings surged after disclosing an unsolicited approach from a “major producer” of platinum-group metals in South Africa. Tungsten West Plc soared after securing up to £71 million ($97 million) from the UK government to restart a historic tin and tungsten mine in Devon, a project backed by the National Wealth Fund to secure critical mineral supplies for aerospace and defence industries. Vistry jumped 18% after winning a £350 million government contract to build 3,028 homes over 10 years. Crocs stepped out of the discount bin, cutting promotions as revenue hit the $1 billion milestone. Dick’s Sporting Goods cut its operating income guidance, citing tough conditions in athletic footwear and apparel markets. Laopu Gold reported slower first-half revenue and profit growth, missing estimates as falling bullion prices dented Chinese luxury demand. Gold Fields more than doubled its interim dividend and will return an additional $500 million to shareholders as earnings jumped on higher prices.

Fixed Income & FX

Global bond markets stabilized as investors weighed potential US Treasury buybacks and Iran sanctions. Reports emerged that the Treasury might deploy its nearly $1 trillion general account to finance increased buybacks of long-end securities announced last week. However, Bessent’s bond buyback plan drew criticism from Stanley Druckenmiller, who warned that “governments defending prices against fundamentals always lose.” The problem with buying the dip in bonds is that buybacks signal underlying market distress rather than resolution.

US Treasuries and emerging-market currencies are diverging the most in more than four years as higher US yields fail to fuel dollar strength like they once did, a sign of dollar debasement concerns. Sterling rose to a one-week high against the euro, but ING expects the pound to turn lower in coming months as expectations for BOE rate rises look excessive. Bitcoin crossed above $80,000 for the first time in more than three months, reversing subdued valuations as the debasement trade gained traction, with the cryptocurrency up over 20% in the past week. Gold held stable at $4,696.40 a troy ounce after hitting a three-month high on Monday, with analysts eyeing a $5,000 target.

Mexico’s bonds are trading near junk status after the government’s $130 billion bailout of Pemex, a dramatic fall for a country that was an A-rated borrower just a few years ago. European TTF gas held above €68 per megawatt-hour, the highest in more than three years, on winter supply concerns and low storage levels.

Commodities & Energy

Oil futures extended losses, falling more than 2.5%, as investors anticipated lower supply risks from fresh US sanctions on Iran than from military escalation. The pullback came despite the Trump administration’s new sanctions targeting Iranian exports. Russia is weighing a suspension of its floating export duty on wheat, barley and corn through the end of 2026 as exporters face mounting logistics problems after Ukrainian attacks disrupted shipments. Woodside Energy put “everything on the table” in a review of its Beaumont ammonia facility, reflecting a shift in international policy positions and slack demand for lower-carbon ammonia. Tsingshan Holding Group is considering tripling output at its Zimbabwe steel plant, a move that could pressure South Africa’s struggling steel industry.

Banking & Financials

Bank of Nova Scotia posted a rise in third-quarter earnings, driven by a record result from its global wealth management and banking businesses. Bank of Montreal plans to launch a share-buyback program after improved results, despite being hit by a charge from asset sales. HSBC purchased at least $3 billion of Indian government bonds since July, deploying funds from a special diaspora dollar deposit program. UBS is expanding its push to offer clients leveraged deposits with Middle East lenders to take advantage of higher regional savings rates. AIB Group is working with Banco Santander and Howden Group on a significant risk transfer tied to project finance. A Deutsche Bank banker was charged with embezzling €600,000 from wealthy clients, a case that comes as the German lender seeks to expand its wealth management operations.

Deals & IPOs

Fresh signs of European exchanges losing out to the US in attracting key IPOs emerged, with Oura and Aggreko both eyeing US listings. Oura and Dunkin’ are among companies weighing offerings as Wall Street’s IPO boom builds. Aston Martin bondholders owed £1.3 billion filed for discovery in US courts ahead of UK legal action over a contentious £550 million financing deal. Billionaire Alex Gerko is shutting down the investment partnership at the center of a UK Supreme Court case over levies on historical trading profits. Melrose faces up to $100 million in compensation payouts after a toxic chemicals incident at its GKN Aerospace facility in California, though it will not face prosecution. Lego is investing in software-enabled bricks and other products to sustain its growth run. OnlyFans paid $700 million in dividends to its founder before his death this year, with the platform employing fewer than 50 people despite being a reliable cash machine. The company has 5 million creator accounts according to its latest annual results.

Emerging Markets

China’s IPO rush is showing strain as the pace nears the 2023 frenzy, with signs the breakneck speed may be difficult to sustain. Avenue Supermarts, a leading Indian supermarket operator, plans to raise up to 10 billion rupees ($105 million) through a domestic bond offering, its largest ever. Cholamandalam Investment, one of India’s biggest shadow lenders, plans to raise up to 20 billion rupees ($209 million) through perpetual bonds, the largest such sale by a non-bank. India approved the transfer of technology for all conventional missile systems developed by its state-run defense research agency to domestic manufacturers. A popular Indian fund cut its minimum investment threshold for overseas investments to $500. Senegal’s parliament ordered a probe into total-return-swap deals the country entered last year to raise about €1 billion ($1.2 billion). South Korea stepped up checks of cabbage arriving from China after sellers were found using formaldehyde to keep the brassicas fresh. Hong Kong luxury rents are expected to climb 5% in 2026 on an expat wave, according to JLL. Dharmacapital, Japan’s only high-frequency trader, moved all staff to Singapore, effectively leaving Tokyo with no such firms operating.

Geopolitics & Policy

Treasury Secretary Bessent’s “Operation Economic Outcast” aims to isolate and squeeze Iran’s economy, but the effort looks more like business as usual than a game-changer. Experts warn that a campaign aimed at avoiding military escalation could instead provoke it, as Iranian leaders vow retaliation across the oil-rich Gulf. China threatened to retaliate against the US and signaled it won’t back away from cooperation with Iran after sanctions targeted businesses in China and Hong Kong. China has emerged as an unexpected winner of the Iran conflict, weathering the oil shock better than anticipated. The Trump administration will return diplomats to Middle East embassies as early as this week, suggesting Washington does not anticipate a renewal of full-scale conflict. The State Department began reviewing visas of up to 200,000 foreign citizens applying for asylum, with cancellations possible in waves. The US-Canada trade war escalated after negotiations collapsed, with detailed accounts showing what Canada had to give up was seen as too costly. Trump threatened a 50% tariff on automobiles and parts from Canada.

Tech & AI

Emerald AI, now valued at $1.05 billion, uses software to keep power demand at data centers from getting out of control, aiming to reverse the backlash against these facilities. Irregular, an Israeli start-up that worked with OpenAI, Anthropic and Meta to assess AI model security, made a mistake that sent its tests off the rails. Z.ai, a Chinese lab, will release an open-weight AI model this week that could test global cybersecurity, following an incident where an unreleased OpenAI model demonstrated hacking abilities. CEOs are pushing to reduce workplace DMs and boost group chats, partly to train AI systems.

Other News

A major new study found at least 1 in 4 NFL players develops CTE, with the actual prevalence likely much higher. The findings raise questions about why OSHA hasn’t intervened, with a former chief scientist saying “we never see things that are this dire.” Parents seeking to minimize CTE risk for children playing football should focus on reducing the total number of blows to the head. A New York Times/Philadelphia Inquirer/Siena poll found Pennsylvania Republicans view John Fetterman more favorably than their own GOP senator, though he’s losing Democratic support. The same poll shows Josh Shapiro leading the governor’s race with support for a possible presidential bid. Target apologized and dropped a Halloween costume criticized as evoking blackface imagery. An ICE raid in Lakewood, NJ detained 18 immigrants, plunging the town into fear. Artemis Ghasemzadeh, a Christian convert who fled Iran and was deported by Trump, found asylum in Canada. Western tanks sent to Ukraine sit idle as drones have rendered them almost unusable. El Niño is on track to be the strongest in living memory with air and sea surface temperatures already breaking records. Lily Friedman, a 95-year-old pianist, is weighing retirement as her vision and hearing deteriorate. Jelly Roll celebrated his 300-pound weight loss on Jimmy Kimmel Live, joking “that means I’ve lost an entire Donald Trump.” Kevin Warsh faces an unexpected trial of his slimmed-down communications style in his first major speech as Federal Reserve chairman at Jackson Hole. Northampton Town FC received investment from Gemcorp, raising questions about whether the club is an emerging market play.