Market developments
Equities: Global shares showed a mixed performance this week. US shares rose to new record highs as soft jobs data increased expectations for Federal Reserve rate cuts. The S&P 500 hit a new record and the Nasdaq and Dow also increased. However, Eurozone shares edged lower due to worries about public debt and Chinese shares also fell after a surge in August.
Fixed Income: Treasury yields were lower ahead of the U.S. employment report and a weak U.S. job openings data drove 2- and 10-year Treasury yields lower. Markets are now fully pricing in a Fed rate cut in mid-September, while additional rate cuts are also being priced in for Canada as weaker labour may signal the need for further easing.
Commodities: Gold and silver both rose after breaking higher on technical momentum, supported by rate-cut expectations and concerns over Fed independence. Oil prices declined ~3% for the week amid concerns over OPEC+ supply and an unexpected build in U.S. crude stockpiles.