Bad Intel or just bad intel?
There was a focus on corporate news, with several notable stories emerging from the US in particular. The share price of Apple rose over 13% during the week after the company announced it would invest an additional $100 billion in its US manufacturing operations, bringing the total to $600 billion over the next four years.
Meanwhile, US President Trump called for Intel CEO LipBu Tan to resign due to his alleged ties to Chinese semiconductor firms, which Tan has labelled “misinformation”.
European shares posted their biggest weekly gain in 12 weeks as the financial sector continued its rally. Shares of Novo Nordisk jumped after results from rival Eli Lilly’s trial of an experimental weight-loss pill lagged Novo’s obesity treatment. Eli Lilly stock fell over -17%. Reports on Wednesday showed that Eurozone retail sales rose by 0.3% in June, missing forecasts for 0.4% growth.
In the US, the ISM services index contracted to 50.1 in July from 50.8 in June, underperforming consensus estimates for a rise to 51.5. US labour productivity climbed 2.4% in Q2, the largest jump since 2021.
The Bank of England cut interest rates to 4% on Thursday, the lowest level in two years. However, the vote was narrower than anticipated at 5:4, resulting in a more hawkish tone. The market is now pricing in the next rate cut to occur in early 2026 rather than late 2025.
The price of oil fell by more than -5% in EUR terms after OPEC announced further plans to increase crude production in September. The price of gold futures reached a record high after reports emerged that the US would place tariffs on 1kg bars in a targeted move against Switzerland, which was also hit with a 39% import levy last week.
The White House suggested it would clarify tariffs on gold bars after major gold refineries paused deliveries of bullion to the US.
Equities
Global stocks finished up 1.7% in euro terms and up 2.6% in local terms last week. Year-to-date global markets are down by -0.3% in euro terms and up by 12.2% in local terms. The US market, the largest in the world, finished up 1.6% in euro terms and up 2.4% in local terms.
Fixed Income & FX
The US 10-year yield finished at 4.3% last week. The German equivalent finished at 2.7%. The Irish 10-year bond yield finished at 2.9%. The Euro/US Dollar exchange rate finished at 1.16, whilst Euro/GBP finished at 0.87.
Commodities
Oil finished the week at $64 per barrel and is down -20.8% year to-date in euro terms. Gold finished the week at $3,398 per troy ounce and is up 15.1% year-to-date in euro terms. Copper finished the week at $9,693 per tonne and is down -0.4% year-to-date in euro terms.
The week ahead
Tuesday 12th August
US CPI inflation data for July is reported.
Thursday 14th August
UK GDP growth for Q2 goes to print.
Friday 15th August
US retail sales data for July is released.
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