1. Asian Equity Markets: Mostly Higher After Mixed Close Last Week
- Morning Moves: Asia-Pacific stock markets mostly opened in positive territory on Monday morning, responding to the recovery in Wall Street stock prices at the close of trading last Friday.
- Weekly Performance on Wall Street: Although stocks rose on Friday, supported by the release of Purchasing Managers' Index (PMI) data, major Wall Street indexes posted weekly declines—breaking a three-week winning streak:
- Dow Jones Industrial Average (DJIA): Fell -0.85%
- S&P 500: Dropped -1.43%
- NASDAQ Composite: Plummeted -2.05%
2. US Bond Market: Long-Term Yields Continue Their Uptrend
- Rising Yields: Long-term US Treasury yields edged higher again amid investor concerns over the swelling US national debt and the effectiveness of the extended Treasury buyback program.
- Key Tenor Movements:
- 10-Year US Treasury Yield: Rose more than 3 bps to 4.73% (vs. 4.63% the previous week).
- 30-Year US Treasury Yield: Surged more than 3 bps to 5.27% (vs. 5.21% the previous week).
3. US Macroeconomics: Flash PMI Data Shows Sectoral Divergence
- Composite PMI: The S&P Global Flash US Composite PMI rose to 56.0 in August (the highest since April 2022) from 54.5 in July.
- Manufacturing PMI: Fell to 53.2 from 53.9 (below expectations of 53.9), recording the weakest growth rate since March due to surging fuel costs, supply chain delays, and raw material shortages.
- Services PMI: Surged to 56.8 (the highest since December 2024) from 54.6, far exceeding the consensus estimate of 54.0.
4. Geopolitics & Energy Markets: US Preparing Largest Coordinated Economic Isolation Sanctions on Iran
- US Treasury Announcement: US Treasury Secretary Scott Bessent is scheduled to announce details of the latest economic sanctions, described as the largest coordinated economic isolation campaign in history.
- Tehran's Response: Iran dismissed the threat of new sanctions, claiming that the US economic pressure campaign is an admission of the failure of their strategy in the Persian Gulf.
#dyor 😊