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Global equity markets demonstrated resilience during the week, recovering from an early risk-off sell-off driven by heightened geopolitical tensions in the Middle East, rising bond yields, and concerns over renewed inflationary pressures. Sentiment improved markedly later in the week as Treasury yields retreated from recent highs and investors took comfort from indications that policymakers may refrain from additional near-term monetary tightening, supporting a broad-based recovery across both developed and emerging markets. Technology and other growth-oriented sectors led gains, while a weaker U.S. dollar and improving risk appetite helped fuel a synchronized advance across international equities, allowing markets to finish the week modestly higher despite ongoing macroeconomic and geopolitical uncertainties.

In global geopolitics, escalating military exchanges between the United States and Iran heightened concerns over potential disruptions to oil supplies through the Strait of Hormuz. The resulting surge in crude oil prices reignited inflation fears and pushed global bond yields sharply higher, weighing on risk sentiment. U.S.-China tensions remained elevated after China imposed export controls on 10 U.S. firms in response to the Pentagon’s decision to add several major Chinese companies, including technology groups, to its military-linked entity list. Investors also monitored the approaching 30 September U.S. government funding deadline. In Europe, Italy announced a further 15-day extension of border controls with Spain amid ongoing tensions related to the Ceuta migration crisis, underscoring broader political and immigration challenges across the region.

Global equities advanced over the week reflecting improving risk sentiment across both developed and emerging markets. Strength in U.S. technology and artificial intelligence-related shares, supported by upbeat corporate earnings and guidance, helped offset mixed regional performance in Europe and Asia, while investor attention remained focused on the Jackson Hole symposium and the outlook for global interest rates. The constructive tone in major equity markets was underscored by the continued resilience in global risk assets despite ongoing macroeconomic and geopolitical uncertainties.

In global geopolitics, the ongoing Middle East tensions and disruptions to energy supply routes through the Strait of Hormuz, continued to shape oil-price expectations and inflation concerns. The Trump administration declared a national emergency aimed at protecting the U.S. bulk power system from foreign security and cyber threats, reinforcing focus on critical infrastructure security, supply-chain resilience, and domestic manufacturing. In addition, trade-policy uncertainty persisted following the U.S. decision to impose 50% tariffs on Canadian imports after bilateral trade negotiations stalled, raising concerns about potential retaliatory measures and the impact of higher trade barriers on global growth and corporate supply chains. Collectively, these developments contributed to elevated uncertainty across global markets.

Global equities weakened during the week closely tracking the broad pullback in U.S. equities, as risk sentiment softened amid rising U.S. Treasury yields and concerns over the strength of consumer demand. While developed markets were pressured by weakness in U.S. technology and consumer-related stocks, performance across international markets was mixed, with some support from select European and Asian equities. Overall, investors adopted a more cautious stance as they reassessed growth expectations and the interest rate outlook. Rising U.S.-Iran tensions and proposed escalation of economic sanctions against Iran pushed crude oil prices higher this week, reinforcing inflation concerns across financial markets

In global geopolitics, deteriorating U.S.-Iran relations, the prospect of intensified U.S. economic sanctions on Iran, and the absence of diplomatic progress heightened concerns over energy supply disruptions and pushed oil prices higher. President Trump signaled that a United States – Canada trade agreement was nearing finalization. This reduced uncertainty around proposed tariff measures and supported investor sentiment toward North American trade-sensitive sectors. These geopolitical developments, combined with higher crude oil prices and renewed inflation concerns, contributed to rising global sovereign bond yields and increased volatility across international equity markets.

Global equities moved higher during the week as softer U.S. inflation data supported expectations of a measured central bank policy path and helped lift major equity indices to new highs. AI-related companies continued to drive market leadership, with strong results from firms such as Nebius, Super Micro Computer, and CoreWeave reinforcing enthusiasm for infrastructure investment. Global markets finished the week higher, despite geopolitical tensions in the Middle East, weaker Chinese economic data, and a decline in U.S. retail sales which tempered sentiment late in the week. The Bank of Japan’s (BoJ) discussion summary indicated a hawkish rate policy. Fed officials reiterated inflation risks and emphasized the prioritization of inflation management. 

In global geopolitics, safe-haven flows and investor anxiety intensified following reports of an attack on a commercial tanker in the Persian Gulf, which culminated on Friday when the U.S. Department of Defense threatened an indefinite naval blockade of the Strait of Hormuz. Supply disruption fears, drove up Brent crude prices toward $87 per barrel and broad-based profit-taking across vulnerable global indices. Iran’s announcement that it would join the BRICS New Development Bank underscored ongoing shifts in geopolitical and economic alliances among emerging markets.

Global equities advanced during the week, supported by stronger-than-expected corporate earnings and continued strength in technology stocks. U.S. equity markets recorded a second consecutive week of gains, with both the S&P 500 and Dow Jones Industrial Average reaching record highs, reflecting sustained investor confidence in corporate fundamentals and artificial intelligence (AI)-driven growth themes. Market sentiment remained constructive despite geopolitical uncertainty, underpinned by robust performance among AI beneficiaries, including Amazon, and continued optimism surrounding digital infrastructure and AI-related investment. However, hawkish Federal Reserve commentary, higher Treasury yields, and fluctuations in energy prices linked to developments in the Strait of Hormuz contributed to periods of heightened market volatility.

In global geopolitics, investor sentiment was initially buoyed by signs of progress in U.S.-Iran negotiations aimed at restoring shipping access through the Strait of Hormuz, which contributed to a decline in oil prices early in the week. However, crude prices subsequently rebounded following reports of potential Iranian restrictions on vessel transit through the waterway, underscoring persistent uncertainty surrounding global energy security. Iran continued diplomatic engagement with Gulf nations while warning that any escalation of U.S. military involvement could threaten critical regional energy and transportation infrastructure. Meanwhile, tensions along the Israel-Lebanon border resurfaced following renewed cross-border incidents, even as U.S.-facilitated diplomatic efforts continued to pursue de-escalation and strengthen regional security arrangements.

Global equities declined during the week, as investors assessed a combination of escalating geopolitical tensions, higher energy prices, and rising sovereign bond yields. Market sentiment remained cautious after U.S. forces carried out strikes on Iranian military targets and a drone attack hit a tanker near Egypt’s Damietta port, highlighting the risk of further disruptions to key energy and shipping corridors. At the same time, renewed trade-policy concerns and mixed corporate earnings tempered risk appetite, despite generally resilient economic data across Europe. President Trump’s meetings with Israeli Prime Minister Benjamin Netanyahu and Ukrainian President Volodymyr Zelenskiy also kept geopolitical developments firmly in focus throughout the week.

Global equities fell during the week, as a compounding mix of geopolitical escalation and trade friction deeply rattled international markets. 

The turbulence intensified overnight when Russia launched a wave of missile and drone strikes targeting the critical Ukrainian ports of Odesa, Izmail, and Mykolaiv, heavily damaging logistics infrastructure, fuel storage, and cargo-handling facilities tied to Kyiv’s military operations.

Simultaneously, trade anxieties spiked as the Trump administration imposed sweeping new 10% and 12.5% tariffs on goods from 60 global trading partners, including China and the European Union, pointing to insufficient enforcement of forced-labor restrictions.

Compounding the global unease, U.S. forces executed fresh overnight airstrikes against Iranian command centers, drone facilities, communications networks, and maritime assets—marking the thirteenth consecutive night of direct military operations and pushing regional tensions to critical highs.

Global equities advanced during the week, supported by robust AI-driven technology earnings, strong semiconductor-sector results from ASML and TSMC, ongoing M&A activity, and resilient investor risk appetite despite elevated geopolitical tensions.

Geopolitical developments remained a key focus for investors as tensions in the Middle East continued to escalate. Iran launched fresh strikes on U.S. facilities across the region, including its first direct attack in Syria, following a sixth consecutive night of U.S. strikes on Iranian military targets. The deterioration of the truce agreed last month has resulted in near-daily exchanges of attacks, disrupted shipping through the strategically important Strait of Hormuz, and renewed concerns over potential economic repercussions. 

Syria also reported intercepting a shipment of missiles, rockets and drones allegedly intended for Hezbollah at its border with Iraq. Earlier in the week, Iran declared the Strait of Hormuz a “red line” and threatened Gulf infrastructure, although President Trump later withdrew a proposal to impose a 20% transit fee on Hormuz cargo, opting instead to pursue trade and investment agreements with Gulf states.

Global equity markets advanced during the week as strong semiconductor demand, AI-related investments, and resilient economic data outweighed heightened geopolitical tensions in the Middle East. Markets initially entered a risk-off mode following the renewal of U.S.-Iran tensions. However, U.S. equities recovered from early volatility, led by technology and semiconductor stocks, while investors digested hawkish Federal Reserve minutes and stronger-than-expected labor market indicators. Rising Treasury yields and ongoing supply-chain concerns kept markets cautious, but optimism around AI-driven growth and corporate investment supported risk sentiment. 

In global geopolitics, the U.S. Treasury’s sudden cancellation of the 60-day sanctions relief waiver erased expectations that additional Iranian crude exports would hit global markets, leading to higher oil prices. The U.S. launched strikes on Iran and attacks by Iran on commercial shipping vessels in the region. However, diplomatic mediation by Qatar alleviated total war anxieties, leading to a dip in oil prices by the end of the week. Meanwhile, President Putin reportedly remains resistant to peace negotiations with Ukraine, with recent Ukrainian drone strikes on Russian energy and port infrastructure increasing the likelihood of further escalation in the conflict.