UK CPI was headline shock sitting on top of an underlying trend that continued to soften

• European markets experienced a shift from bear steepening to bear flattening, with German yield curve changes ranging from +2.4 bps (30-yr) to +5 bps (2-yr). • EU swap rates increased between 0.9 bps for 30-year and 4.5 bps for 2-year rates, driven by higher energy prices and the US/Iran stalemate.

• The European Central Bank (ECB) has warned that a significant market correction for AI stocks on Wall Street is likely, drawing parallels to the dot-com bubble of the early 2000s. • The ECB notes that even if AI technology ultimately succeeds, current overstretched valuations and shifting macroeconomic risks could trigger sharp stock price adjustments.

• European markets showed mixed results this morning as a global rout in technology and semiconductor stocks continued to pressure investors. • While the FTSE 100 dipped slightly, it found some support from oil majors and basic resources stocks; meanwhile, Paris saw gains and Frankfurt experienced slight losses.

• Global markets remained muted as prospects for a deal to end the conflict in the Middle East continued to recede. • TSX futures trended positive following an announcement from U.S. President Donald Trump regarding a trade agreement with Canada.

• Indian stock markets declined for the seventh consecutive session on August 19, 2026, with the Nifty 50 losing 2.1% over the seven-day period. • The downturn was driven by high long-term global bond yields, which reduced investor appetite for emerging-market equities.

• Asian equity markets declined today as a sharp selloff in semiconductor shares triggered a broader downturn across the region. • The bearish sentiment was driven by a combination of rising bond yields, escalating oil prices, and heightened Middle East tensions.

• India has replaced Indonesia as the "least-favoured" Asian stock market according to a recent fund managers' survey conducted by Bank of America Corp. • The shift comes as India's stock market ranks among the worst performing in Asia this year, leading many fund managers to maintain underweight positions.

• India has overtaken Indonesia as the least-preferred stock market in Asia, according to a Bank of America poll conducted between August 7 and August 13. • The survey, which included 98 panelists managing $272 billion in assets, identified a lack of clear AI exposure and weak growth as the primary risks for Indian equities.

• India has overtaken Indonesia as the least-preferred stock market in Asia according to a recent Bank of America survey of fund managers. • Approximately 32% of the surveyed respondents are currently net underweight on Indian equities, signaling a bearish sentiment.

• Major European stock market indices, including the STOXX 600, have retreated by approximately 0.5 per cent. • The downturn is mirrored in the U.S., where Wall Street futures contracts indicate a lower opening for the trading session.

• Euro zone government bond yields paused their recent upward trend on Wednesday, following a period of stability in the U.S. Treasury market. • Despite the stabilization in bonds, global markets remain under pressure due to a continuous surge in oil prices.