Monthly investment news August 2026

Energy prices spiked for a bit due to fresh tensions in the Middle East, but they settled down later, adding to ups and downs in commodity markets. 

On the corporate side, second-quarter earnings got investors thinking about how much growth certain sectors, like technology, can keep up. Within technology, some companies really stood out more than others. 

In bond markets, signs of stronger economies and rising inflation pushed government bond yields higher. Investors started bracing for the chance of more interest rate hikes down the line. 

Currency markets also had their moments. The US dollar gained strength during the month but lost all those gains by the end, finishing weaker than where it began. 

Market activity

At the start of July, we made some small changes to the Managed Funds.

• We cut back on government bonds and put more into Alternatives using the Active Asset Allocation fund (AAA) and the Prisma funds.
• To fund this, we used cash and increased our investment in Gold.
• We also started hedging against USD currency risks in our main equity portfolio.

We added to fixed income positions too: 

• We reduced the short-duration stance in AAA, Prisma funds, the Cautiously Managed Fund, and Managed Funds.
• Then, we closed the underweight bond position and brought the Managed Funds' bond exposure back to the middle of their standard range.

Global equity markets

Global stock markets had mixed results in July. Technology shares didn’t do as well, even though most companies reported strong earnings for the second quarter. 

Many companies managed to beat what analysts expected, but investors stayed cautious. They want more proof that big spending on artificial intelligence will lead to steady profits. 

US markets dropped when measured in euro terms, while European markets stayed mostly flat. Strong performances by industrial and financial companies balanced out declines in technology-related sectors.

Out of 11 sectors, 6 finished on a positive note. Energy was the top performer, with an 11.5% gain. On the other hand, Information Technology slipped by 5%, and Utilities went down by 2.4%. 

Bonds and interest rates 

Yields on government bonds went up in most developed economies in July. 

In the US, the 10-year Treasury yield rose from around 4.5% to 4.7% during the month. This happened because strong economic data and rising energy prices made markets rethink their views on inflation and monetary policy. 

While major central banks like the Federal Reserve and the ECB kept policy rates steady, they signalled that interest rates might stay high longer than people had thought. 

Markets are still considering the possibility of more rate hikes over the next year. 

Commodities and Currencies 

Geopolitical events made a big impact on commodity markets last month. 

• Oil prices started off lower as tensions eased during Q2.
• But as risks rose again, WTI crude shot up past $92 a barrel. Prices later dipped when tensions eased and some traders took profits. Still, oil prices ended the month much higher than before the war.
• Gold didn’t move much in euro terms.

Currency markets had their own twists and turns: 

• The US dollar got stronger for most of July.
• Then it weakened when the Federal Reserve kept interest rates steady.

By the end of July, one euro was buying 1.153 US dollars, up from 1.142 at June’s close.