Weekly Market Review - 03-08-2026

1 day ago
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Markets remained broadly stable this week, despite further weakness across the major US indices and continued volatility in commodity prices. In this week’s review, we examine the latest US inflation figures, renewed uncertainty surrounding the Strait of Hormuz, the ECB’s warning over climate-related financial risks and the key economic data due in the week ahead.

Market Recap.

Equity markets recorded relatively modest movements this week, with UK stocks edging higher while the major US indices declined.

The FTSE 100 ETF rose 0.84%, while the Dow Jones Industrial Average ETF fell 0.85% and the S&P 500 ETF declined 0.68%.

Technology stocks also moved slightly lower, with the Nasdaq 100 ETF falling 0.48% — its third consecutive weekly decline. Overall, the moves remained marginal, suggesting markets were broadly stable despite continued uncertainty.

News.

FIFA is facing growing pressure from European football associations following its abandoned plan to sell a stake in competitions including the World Cup to private investors.

The proposal would have created a subsidiary valued at $20 billion, with more than 20% sold to investors to raise around $4.2 billion. UEFA and its 55 member associations opposed the plan and threatened to boycott future FIFA events if it proceeded. Although FIFA has now withdrawn the proposal, UEFA is considering legal action and says it has lost confidence in president Gianni Infantino. Wales has withdrawn its support for his re-election, with the English FA expected to follow.

Inflation.

US inflation remained elevated in June, despite a slight fall in prices over the month.

The Personal Consumption Expenditures price index, the Federal Reserve’s preferred measure of inflation, increased 3.70% compared with a year earlier. Excluding food and energy, core PCE inflation stood at 3.30%. On a monthly basis, the headline index fell 0.10%, while core prices rose 0.10%. Consumer spending increased 0.30%, suggesting household demand remained resilient as the Federal Reserve continued to assess whether further action was needed to bring inflation back towards its 2.00% target.

Central Banks.

The European Central Bank has warned that climate change and nature loss pose a growing threat to the global economy and financial system.

ECB executive board member Frank Elderson said extreme weather and the decline of essential natural resources could affect credit risk, economic growth, inflation and long-term financial stability. The ECB is increasing its monitoring of how these risks could affect Europe’s largest banks and plans to publish further analysis later this year examining how ecosystem damage may translate into credit losses across the Eurozone banking sector.

Commodities.

Commodity markets remained highly volatile as hopes of renewed US–Iran diplomacy initially pushed oil prices lower, before fresh attacks and disruption around the Strait of Hormuz revived concerns over global supplies. Despite rising on Friday, WTI crude ended the week down around 5.20% at $84.67 per barrel, while Brent fell approximately 6.90% to $90.12.

Precious metals also weakened. A firmer US dollar, elevated Treasury yields and expectations of tighter US monetary policy outweighed some safe-haven demand. Gold slipped around 0.50% to $4,049.10 per ounce, while silver declined approximately 1.80% to $57.59.

ESG.

Italy is facing the latest wave of extreme heat across Europe, with 19 major cities already under the highest red alert and 25 of the country’s 27 major cities expected to reach that level on Monday.

Temperatures climbed into the mid-30s over the weekend as a subtropical anticyclone strengthened across the Mediterranean. Meanwhile, wildfires continue across Greece, France, Portugal and Spain. More than 200,000 hectares have burned in Spain during 2026, that’s around five times the average for this point in the year. Europe is currently warming twice as quickly as the global average, contributing to more frequent heatwaves, greater pressure on water supplies and increasingly intense wildfires.

Geopolitics.

According to latest updates US President Donald Trump has called off planned strikes against Iran and claimed that an agreement has been reached over the Strait of Hormuz, ahead of further negotiations.

The proposed deal would reportedly link the reopening of the strait to the US lifting its naval blockade of Iranian ports, while allowing Tehran to resume oil exports. However, Iran has denied holding talks with Washington, saying it is only discussing a temporary safe shipping route with Oman.

Week Ahead.

United States

The July employment report will be the main focus in the US this week. Released on Friday 7 August, it includes nonfarm payrolls, unemployment and average hourly earnings. Markets will assess whether the labour market remains resilient following the Federal Reserve’s decision to leave interest rates unchanged last week.

The July ISM Manufacturing PMI is released today, followed by June job openings, trade figures and factory orders on Tuesday 4th. Wednesday 5th brings the ADP Employment Report and ISM Services PMI. Preliminary second-quarter productivity figures and weekly Initial Jobless Claims are released on Thursday 6th.

United Kingdom The UK economic calendar is relatively quiet following the Bank of England’s decision to maintain Bank Rate at 3.75% on 30 July.

The final July Manufacturing PMI is released today, followed by the Services and Composite PMIs on Wednesday 5th and the Construction PMI on Thursday 6th. The Office for National Statistics also publishes its latest business insights and real-time economic indicators on Thursday. Markets will assess whether higher energy costs and geopolitical uncertainty have affected business activity and confidence.

Eurozone

Purchasing managers’ surveys and consumer activity will be the main focus in the Eurozone this week. The final July Manufacturing PMI is released today, followed by the final Services and Composite PMIs on Wednesday 5th.

Eurozone industrial producer prices for June are also due on Wednesday, before June retail sales on Thursday 6th. Markets will watch for evidence that higher energy costs are feeding into business prices, while the retail figures will provide an indication of the strength of household spending.

It is important to note that the geopolitical situation remains highly fluid, and developments are changing rapidly. As such, the outlook may shift quickly as new information emerges.