Weekly Market Movers — Key Highlights
  • The Federal Reserve raised interest rates by 25 basis points and signalled additional tightening ahead.
  • New Zealand GDP and South African retail sales exceeded expectations, indicating pockets of economic resilience.
  • Brent crude climbed above US$108/bbl following attacks on Saudi energy infrastructure and escalating Red Sea disruptions.

Global equity markets fell during the week as Brent crude surged above US$108 per barrel following attacks on Saudi Arabia’s East-West pipeline and heightened disruption risks across the Red Sea and Bab el-Mandeb Strait. The capture of strategic territory by Houthi forces further intensified concerns over global trade routes, energy security and inflationary pressures. While energy stocks benefited from rising oil prices, broader equity markets struggled amid fears that higher input costs could undermine economic growth and corporate profitability. 

In the United States, equities also declined as the Federal Reserve raised interest rates by 25 basis points, marking its first increase in more than three years and signalling further policy tightening to address persistent inflation. Stronger-than-expected retail sales data highlighted continued consumer resilience but reinforced expectations of restrictive monetary policy. Geopolitical developments remained prominent, with U.S. officials engaging in talks with Houthi representatives in Oman and the U.S. administration proposing a US$2.8 billion military aid package for Israel.

Global Updates
  • The MSCI All Country World posted broad-based declines during the week, amid intensifying Middle East tensions, disruptions to energy infrastructure, and renewed uncertainty over the economic impact of higher commodity prices.
  • New Zealand’s economy expanded 0.2% quarter-on-quarter in Q2, outperforming forecasts of 0.1% growth, although activity slowed markedly from the 0.8% increase recorded in Q1 as Middle East tensions weighed on business and consumer confidence.
  • South Africa’s retail sales rose 3.4% year-on-year in July, up from a revised 1.1% increase in June, indicating stronger consumer spending and improved activity across the country’s retail sector.
  • SB Energy, a data-centre developer backed by SoftBank Group, will sell up to US$500 million in shares to Japanese investors as part of its U.S. listing plans, with proceeds earmarked for data-centre development, power generation, and related infrastructure projects.
  • Huawei announced it will introduce two new artificial-intelligence chips in 2027, the 960DT and Ascend 960PR, as part of its efforts to strengthen its AI-computing business.
  • Saudi East-West Pipeline Shutdown following a drone attack raised concerns over global energy supply security, pressuring broader equities.
  • Escalation of Red Sea and Middle East supply disruptions pushed Brent crude above $108/bbl, intensifying inflation concerns and weighing on global risk assets.
  • Houthi forces seized strategic territory overlooking the Bab el-Mandeb Strait, dealing Saudi Arabia a major setback in Yemen and raising concerns over maritime security and Iran’s growing regional influence.
U.S. Equity
  • U.S. equity markets edged lower as the Federal Reserve delivered its first rate hike in over three years and signalled further tightening, while rising Treasury yields, elevated oil prices and escalating Middle East tensions weighed on investor sentiment, offsetting gains in energy stocks.
  • The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00%, citing persistent inflationary pressures and signaling further policy tightening ahead.
  • U.S. retail sales rebounded 1.2% in August, with spending increasing across most categories and core retail sales posting their strongest gain since September 2024.
  • Eli Lilly announced its oral obesity drug captured over 30% of new U.S. patients, narrowing Novo Nordisk’s market lead.
  • Accenture agreed to a US$25 million settlement with the U.S. Department of Justice to resolve allegations concerning its diversity and inclusion practices.
  • Abbott Laboratories agreed to a settlement exceeding US$384 million to resolve allegations involving contamination risks in infant formula production.
  • British Prime Minister ​Andy Burnham is expected to hold his first meeting with United ​States President ​Donald Trump next week on the sidelines of the United Nations General Assembly.
  • The U.S. International Development Finance Corporation approved a US$500 million trade-finance facility, partnering with the International Finance Corporation to help U.S. companies expand trade and investment activities across emerging markets in South America, Southeast Asia, and Africa.
  • The Trump administration plans to provide Israel with a US$2.8 billion munitions package.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index edged higher over the week. 
  • The U.S. 10-year Treasury yield fell to 4.959% and the yield on the 2-year note rose slightly to 4.688% over the week.
  • The U.S. Dollar Index rose to 100.31 over the week.