Markets focus on US Treasury buyback signals amid subdued dollar and rising gold prices, with European PMIs showing mixed activity.
Gold climbed 1.7% to $4,596, extending its third consecutive weekly gain as the USD remained under pressure. US 10-year Treasury yields fell 0.6 bps to 4.692%, stalling after a brief rebound to 4.70%, while the dollar weakened across major currencies, including EUR and AUD gains.
European business activity showed mixed signals, with Germany’s August flash manufacturing PMI at 54.1, beating expectations, while France’s activity contracted further. The UK’s services PMI rose to 52.8, exceeding forecasts, though retail sales declined in July.
Markets debated the US Treasury’s decision to double long-term debt buybacks, weighing its impact on yields and the dollar. S&P 500 futures rose 0.4%, reflecting cautious optimism amid shifting rate expectations.