Market Commentary: Monday 4th August

Indices found support overnight after a consistent sell-off in the final week of July.
The S&P 500 ended Friday 1.6% lower, and the Nasdaq 100 dropped 2%. The U.S. 10-year yield fell 16 basis points Friday, while policy-sensitive two-year yields dropped 28 basis points.

The USD saw a sharp decline on Friday and was relatively unchanged overnight, as weaker-than-expected NFP data improved expectations for Fed rate cuts.
“September is a lock for a rate cut — and it might even be a 50-basis-point move to make up the lost time,” said Jamie Cox at Harris Financial Group.

Trump said he will announce a new Fed governor and a new jobs data statistician in the coming days.

Switzerland is bracing for a volatile Monday after Trump set a punitive 39% export tariff on the country.
This could be compounded by the reopening of markets following Swiss National Day on Friday.

In oil, OPEC+ agreed to another major output increase, stoking concerns about global oversupply.

• Bitcoin was little changed at $114,340.23

• Ether rose 1.2% to $3,534.09

• Spot gold fell 0.2% to $3,356.93 an ounce

• Crude was little changed

It’s a light news day, with markets observing Canada’s Civic Day and Australia’s Labour Day. GBP monetary policy and Trump’s potential Fed and job statistician appointments are likely to be the main market drivers this week.

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