Sunrise Market Commentary - ActionForex

• Borrowing costs are rising across Europe as bond market yields increase, directly impacting mortgage offers in several of the region's largest economies. • Governments are facing a mounting financial burden to service their debts, with IMF data showing massive debt piles for France ($3.9tn), Italy ($3.5tn), Germany ($3.2tn), and Spain ($1.9tn) in 2025.

• Michael Grant of Calamos Investments recommends prioritizing cyclical stocks over defensive positions, even as economic growth begins to slow. • The strategy focuses on three economy-linked sectors, specifically highlighting investments in the railroad and airline industries.

• The U.S. Treasury has implemented a market move that is contributing to surging Treasury yields. • These rising yields directly impact consumers by pushing up mortgage rates and increasing general borrowing costs.

• ECB President Christine Lagarde warned that Europe's post-war growth model is eroding due to geopolitical risks, the loss of cheap energy, and fragmenting global trade. • Lagarde emphasized the urgent need to deepen the Single Market and capital markets to counteract these economic pressures.

• The Euro (EUR/USD) has extended its rebound toward 1.1600, driven by elevated European yields and stabilizing US Treasury yields. • Simultaneously, the British Pound (GBP/USD) surged to its highest level since mid-May, trading above 1.3600.

• Stock futures declined as Treasury yields surged, effectively erasing the market gains previously triggered by comments from Scott Bessent. • The market volatility was primarily driven by a spike in oil prices, which fueled inflation concerns and pushed bond yields higher.

• Global markets rallied and government bond yields fell after the U.S. Treasury Department announced it would double the amount of debt it can buy back from investors. • This strategic move aims to reduce stress among bond investors by managing the supply of government debt more effectively.

• Long-term U.S. Treasury yields surged to their highest levels since 2007 on Tuesday, triggering a significant bond market sell-off. • In response to the volatility, the Treasury Secretary doubled the government's buyback of debt to stabilize the market.

• The Federal Open Market Committee (FOMC) released the minutes from its July meeting on Wednesday, revealing that officials believe inflation remains elevated. • The meeting involved twelve Fed officials, including the seven Board of Governors members and five regional Reserve Bank presidents, who assess economic conditions to set monetary policy.

• The Federal Reserve released the minutes from the Federal Open Market Committee (FOMC) meeting held on July 28–29, 2026. • The document provides a detailed record of the discussions and deliberations regarding U.S. monetary policy during the two-day session.

• India has replaced Indonesia as the least-preferred stock market in Asia, reflecting growing caution among fund managers toward the country's equities. • A survey conducted between August 7 and 13 of 98 fund managers overseeing $272 billion in assets found India's stocks to be among the region's worst performers this year.