FISG Daily Market Wrap 10th August

Daily Market Wrap

“ Global markets began the week on a strong footing, with equities closing near record highs as softer-than-expected U.S. jobs data strengthened expectations that the Federal Reserve may have greater scope to ease monetary policy,” said Amir Amidian, Director of the InterStellar Group Research Center. The MSCI All Country World Index gained 0.1%, marking its seventh advance in the past eight sessions, while Asian equities rose 0.4% following Friday’s record close in the S&P 500. U.S. futures pointed to modest gains, while European markets were broadly flat at the open.

Macro & Rates

The latest labour-market data continued to weigh on U.S. rate expectations. Two-year Treasury yields, which are particularly sensitive to Fed policy expectations, fell sharply on Friday before recovering slightly today. The 10-year yield edged 1bp higher to 4.66%, as rising oil prices added some pressure to inflation expectations. The Dollar strengthened against most G10 currencies, while the Japanese Yen remained under pressure around 158.30 per Dollar. Markets remain alert to the possibility of further Japanese intervention as the Yen continues to underperform.

Commodities

Oil remained the key geopolitical driver. Brent crude rose around 0.5% to $84 per barrel, extending a gain of more than 5% over the past three sessions.Iran rejected talks with the U.S., while negotiations surrounding the reopening of the Strait of Hormuz remained unresolved. Iran also confirmed that its maritime arrangement with Oman includes fees for maritime services.The continued uncertainty around Hormuz, alongside renewed Houthi attacks on the port of Mocha, keeps the geopolitical risk premium elevated across energy markets.Gold consolidated around $4,340/oz after surging 7.3% last week — its strongest weekly performance since January. Despite some stabilisation today, the combination of geopolitical uncertainty, monetary-policy expectations and elevated risk hedging continues to support the precious metal.

Geopolitics

Iran remains at the centre of the regional risk picture. Iranian officials criticised the recent Mecca Joint Defence Agreement, arguing that regional security cannot be treated as a commodity, while Tehran continues to reject direct negotiations with Washington.Trump, meanwhile, indicated that the U.S. is currently “low-keying” its approach toward Iran while highlighting the economic pressure on Tehran.In Gaza, Israeli Prime Minister Netanyahu said some elements of the U.S. 15-point proposal are acceptable, but maintained that Israel will not withdraw until Hamas is completely disarmed.Elsewhere, Russia is set to restructure its military presence on the Syrian coast under a new memorandum with Syria, while Russia also reported strikes on two Ukrainian refineries in the Sumy region FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.