2026 Markets

• The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 3.4% annually in July, a slight decrease from June's 3.5% pace. • Monthly inflation saw a modest increase of 0.1% in July, following an unexpected 0.4% drop in June, with both figures aligning with economist expectations. • In corporate news, S&P 500 companies experienced a significant surge in aggregate earnings growth for Q2 2026, reaching 50%.

• The U.S. trading session was primarily driven by labor-market data and shifting Federal Reserve expectations, causing volatility in the U.S. dollar and Treasury yields. • Policymakers are closely monitoring sharp fluctuations in the Japanese yen due to their potential influence on global financial conditions and inflation. • Japan's economy continues to show moderate expansion, fueled by strong corporate investment, firm domestic consumption, and a recovering global demand.

• Central banks shifted from accommodative to restrictive policies over the last six months to combat inflation and ensure price stability. • The Bank of England maintained its policy rate at 3.75% in June 2026, following a 0.1% economic contraction in April and steady inflation of 2.8%. • Governor Andrew Bailey stated the bank will temporarily tolerate above-target inflation but will respond promptly if figures do not normalize.

• Risk-off sentiment dominated the Asia session on July 24, 2026, as escalating Middle East tensions pushed crude oil prices above $100 per barrel and renewed global inflation concerns. • Canadian retail sales rose 1.0% in May with further increases expected in June, signaling consumer resilience and supporting the CAD, with USD/CAD trading between 1.4070 and 1.4080. • The Governing Council maintained the overnight rate target at 2.25% during its July 15, 2026 meeting, marking the sixth consecutive hold in a policy pause that started in late 2025.

• The Australian June Labour Market Report released during the Asian session on July 23, 2026, showed results significantly stronger than market expectations. • The Swiss National Bank (SNB) continues to monitor the franc, maintaining the option for foreign-exchange intervention to prevent excessive appreciation from threatening price stability. • Recent SNB commentary suggests the franc has depreciated, which has eased financial conditions and provided support for overall economic activity.

• The Asia session was primarily influenced by Japanese trade data, a weakening Japanese yen, and persistent geopolitical tensions in the Middle East. • Key market drivers for July 22, 2026, include the U.S. EIA crude oil inventory report and high-profile U.S. corporate earnings. • These events are expected to impact the volatility of the U.S. dollar, equity indices, Treasury yields, and safe-haven assets.

• Investor sentiment improved during the Asia session on July 21, 2026, following reports of proposed international mediation for a temporary ceasefire in the Middle East. • The news eased immediate market concerns regarding potential energy supply disruptions, causing crude oil prices to retreat from their recent highs. • Asian equity markets saw a recovery as a result of the geopolitical optimism, with notable gains recorded in Japan’s Nikkei and South Korea’s KOSPI.