Investors are focusing on Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole symposium as the primary market-moving event of the day, searching for fresh signals on the future direction of U.S. monetary policy.
European bond markets captured attention after Germany’s 10‑year Bund yield climbed to 3.25% — the highest level since the 2010 euro‑area debt crisis — reinforcing concerns that rising sovereign yields could tighten financial conditions. Yet equity markets have largely shrugged off the move: European shares are on course for a fifth consecutive monthly gain, supported by a strong corporate earnings season and signs of economic resilience across the region.
Divergence within Europe persists. France continues to lag peers after only narrowly avoiding a recession in the first half of 2026; GDP was essentially flat in the second quarter following a 0.2% contraction in Q1. The softer French performance has weighed on domestic assets even as broader continental indices advance.
In corporate news, Toyota reported a sixth straight monthly decline in car sales, attributed largely to weak demand from China — a reminder of persistent challenges in the global auto market despite pockets of strength elsewhere.
Regional market moves were mixed this morning: European and Japanese equities rose about 0.7% while mainland Chinese and Hong Kong indexes traded roughly flat. U.S. futures pointed to a steady opening as traders awaited Warsh’s remarks for clues on the Federal Reserve’s policy trajectory.
Commodity markets showed little reaction. Brent crude remained near USD 90 a barrel and gold held around USD 4,600 an ounce, with investors balanced between risk appetite driven by earnings and caution ahead of potential signals on U.S. interest rates.
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