Market developments
Equities: Global equity markets experienced a mixed performance during the week. In the U.S., stronger-than-expected economic data, such as revised Q2 GDP figures and lower jobless claims, dampened hopes for near-term Federal Reserve easing, leading to a decline in major indices. Asian markets showed a mixed tone with Japan and China climbing higher, while India dropped lower to end the week.
Fixed Income: U.S. Treasury yields generally rose during the week, influenced by the stronger economic data. The U.S. Federal Reserve had delivered a 25 basis point rate cut the previous week, which initially steepened the Treasury curve. However, subsequent data releases led to a rise in yields, with the 10-year Treasury yield increasing. Corporate credit markets showed resilience, with investment-grade spreads hitting multi-decade low.
Commodities: The Bloomberg Commodity Total Return Index (BCOM) had its strongest monthly close in three years, driven by strength in metals and energy. Industrial and precious metals prices were buoyed by supply disruptions, expectations of Federal Reserve rate cuts and geopolitical tension.