August 2026

• Global equities advanced in August, although performance was increasingly shaped by rising bond yields, energy prices and renewed concerns over the direction of monetary policy.
• U.S. equities remained particularly strong, with technology and artificial intelligence-related companies continuing to support the broader market.
• Government bond markets weakened as investors reassessed expectations for monetary policy, with longer-term yields rising across several major economies.
• Energy stocks performed strongly as oil prices remained elevated amid continuing geopolitical and supply concerns.
• Asian markets generally participated in the global advance, supported by technology demand, although Chinese domestic growth remained comparatively subdued.
• Precious metals strengthened considerably, with gold benefiting from geopolitical uncertainty, fiscal concerns and continued demand for defensive assets.

Asia (ex. Japan)

Asian markets outside Japan generally advanced during August, with technology and semiconductor-related companies continuing to benefit from substantial investment in artificial intelligence infrastructure. South Korea's economic outlook improved following a strong first half of the year, while technology-related activity remained an important source of regional growth.

China remained more subdued as comparatively weak domestic demand continued to constrain economic momentum. Policymakers maintained supportive measures, although investors remained cautious regarding consumption and the longer-term outlook for the property sector.

Europe

European equities delivered more restrained performance during August as rising government bond yields and renewed energy concerns offset encouraging economic data. Second-quarter growth proved stronger than previously expected across several Western European economies, improving the region's near-term economic outlook.

However, higher energy prices created renewed inflation concerns, while investors increasingly considered the possibility that monetary policy could remain restrictive for longer than previously anticipated.

United States

U.S. equities advanced strongly during August, with the S&P 500 and technology-heavy indices recording substantial monthly gains. Artificial intelligence remained an important investment theme, while resilient corporate earnings continued supporting investor confidence.

Sentiment became more cautious toward the end of the month as Federal Reserve commentary prompted markets to reassess the outlook for interest rates. Treasury yields increased and investors began assigning a greater probability to renewed monetary tightening if inflation failed to return sustainably toward target.

United Kingdom

UK equities delivered comparatively subdued performance during August despite signs of improving economic activity. Higher long-term bond yields and renewed energy-price pressures created headwinds for interest rate-sensitive areas of the market.

Nevertheless, financial, energy and internationally exposed companies remained relatively well supported, while improving economic indicators provided some encouragement regarding the underlying resilience of the UK economy.

Japan

Japanese equities participated in the broader global advance during August, although currency movements and expectations surrounding Bank of Japan policy remained important influences on market performance.

Investors increasingly focused on the possibility of further monetary tightening as inflation pressures persisted. Technology and export-oriented businesses continued benefiting from strong international demand, particularly within semiconductor and artificial intelligence-related supply chains.

Emerging Markets

Emerging markets delivered mixed but generally positive performance during August. Technology-oriented Asian economies remained well supported by artificial intelligence investment, while South Korea benefited from stronger-than-expected economic activity.

Performance elsewhere was more varied as individual central banks pursued increasingly divergent monetary policies. Higher global bond yields and renewed expectations for tighter developed-market monetary policy created some pressure for rate-sensitive emerging economies.

Commodities

Commodity markets strengthened during August, with energy prices remaining elevated amid continuing geopolitical uncertainty and concerns surrounding global supply. Oil recovered significantly from its early-July lows, helping energy become one of the stronger-performing areas of global equity markets.

Precious metals were particularly strong, with gold rising sharply during the month as investors responded to geopolitical risks, fiscal concerns and uncertainty surrounding monetary policy. Industrial commodities also benefited from resilient infrastructure and technology investment, although comparatively weak Chinese domestic demand continued limiting gains in some metals markets.