Rising geopolitical tensions and higher bond yields drive market volatility, with gold and oil prices climbing amid mixed economic data.
US 30-year Treasury yields surged to their highest level since 2007, reaching above 5.30%, as a global bond selloff intensified. The move followed reports that Iran had seized a UAE oil tanker, sparking a rally in crude prices and broader market unease.
Economic data showed mixed signals, with Canada’s July CPI at 3.0% year-over-year, slightly above the 2.9% estimate, while the US Empire Manufacturing index jumped to 20.60, well above the 11.00 forecast. The US NAHB housing market index also rose to 35, exceeding expectations.
Markets reacted with volatility, as the S&P 500 fell 0.5%, led by declines in megacap stocks like Meta and Microsoft. Gold prices climbed $42 to $4,417, nearing recent highs, while WTI crude oil rose $2.03 to $84.43. The AUD outperformed in FX, while the JPY lagged.