Weekly Market Review - 10-08-2026

Aug 10
4 min read

Global equity markets moved higher this week, led by strong gains across US technology stocks. Elsewhere, rising Eurozone inflation strengthened the case for further interest-rate increases, commodities remained volatile, and geopolitical tensions continued to affect energy markets. We also examine the outlook for ECB leadership, climate-related risks to UK food production and the key economic releases ahead.

Market Recap.

Equity markets moved higher this week, with US stocks delivering particularly strong gains.

The FTSE 100 ETF rose 0.47%, while the Dow Jones Industrial Average ETF gained 2.92% and the S&P 500 ETF advanced 3.51%. Technology stocks led the rally, with the Nasdaq 100 ETF climbing 5.09%, reversing its recent weakness. Overall, markets benefited from renewed enthusiasm for technology shares and expectations that weaker US employment data could delay further interest-rate increases.

News.

Prime Minister Andy Burnham is beginning a national tour to hear directly from households and businesses about cost-of-living pressures. He will spend much of August in “listening mode”, while promoting his longer-term plan for the UK and gathering ideas for supporting struggling high streets.

Downing Street said the government will announce further consumer measures aimed at tackling issues such as hidden pricing and unfair business practices. The tour follows measures including temporarily removing VAT from energy bills, introducing a £2 cap on bus fares and reducing business rates for many hospitality venues. Opposition parties have argued that the government should go further, particularly on energy costs and business taxation.

Inflation.

Eurozone inflation rose to 2.9% in July, up from 2.8% in June and remaining above the European Central Bank’s 2% target. The increase was largely driven by energy inflation, which accelerated from 8.5% to 10.0%.

Underlying price pressures also strengthened. Core inflation, which excludes volatile food and energy prices, increased from 2.4% to 2.5%, while services inflation edged up to 3.3%. Food inflation provided some relief, slowing from 1.5% to 1.2%.

The figures support the case for another ECB interest-rate increase, although policymakers will receive August’s inflation data before their next meeting. Eurozone growth of 0.4% in the second quarter, twice the rate expected, may also give the ECB greater scope to raise borrowing costs without significantly weakening the economy.

Central Banks.

Germany is considering nominating Bundesbank President Joachim Nagel to succeed Christine Lagarde as president of the European Central Bank. German Finance Minister Lars Klingbeil reportedly supports Nagel, although Chancellor Friedrich Merz has yet to endorse a potential bid.

Lagarde’s term runs until October 2027, but speculation continues that she could leave early. Merz said there was currently “no need” to rush the succession process, adding: “When the time comes to find a successor, we will consider it carefully and make a decision.”

Nagel is viewed as a pragmatic candidate who has sought a middle ground on monetary policy. However, he could face competition from former Spanish central bank governor Pablo Hernández de Cos and former Dutch central bank president Klaas Knot. Germany has never held the ECB presidency since the institution was established in 1998.

Commodities.

Commodity markets remained volatile as diplomatic efforts surrounding the Strait of Hormuz reduced some of the geopolitical risk premium attached to oil prices. Although crude rebounded on Friday, US crude oil ended the week down 7.70% at $78.18 per barrel, while Brent fell 5.00% to $83.55.

Precious metals moved sharply higher following weaker US employment data, which reduced expectations of a September interest-rate increase and weakened the dollar. Gold gained 7.20% to $4,340.70 per ounce, while silver rose 9.97% to $63.33.

ESG.

The UK could experience one of its worst cereal and oilseed harvests on record following an exceptionally dry and hot summer. Production of key crops including barley, oats and oilseed rape is forecast to fall to 19.5 million tonnes, while average wheat yields are also well below their ten-year average.

The poor harvest could cost arable farmers up to £390 million in lost revenue. With the UK importing around 40% of the food it consumes, the disruption highlights how climate-related weather extremes can affect agricultural businesses, supply-chain resilience and national food security.

Geopolitics.

The conflict between Russia and Ukraine intensified over the weekend, with both sides carrying out long-range attacks far beyond the front line.

Ukraine launched a major drone strike on the TANEKO oil refinery in Nizhnekamsk, more than 600 miles inside Russia. Ukrainian officials confirmed the refinery was targeted and said the attack caused a fire. Russian authorities reported that 13 people were killed, including a child, while dozens were injured.

The strike followed heavy Russian attacks on several Ukrainian cities over the weekend. The renewed escalation highlights the growing use of long-range drones and the continuing risks to civilians, energy infrastructure and regional stability.

Week Ahead.

United States

Inflation and consumer spending will be the main focus in the United States this week. July CPI and Core CPI figures are released on Wednesday 12th, with markets watching for signs that higher energy costs are feeding into broader price pressures.

July Producer Price Index data and weekly Initial Jobless Claims follow on Thursday 13th. The week concludes with July Retail Sales on Friday 14th, providing an important indication of the strength of household spending. Together, the releases could influence expectations for the Federal Reserve’s next interest-rate decision.

United Kingdom UK economic growth will be the main domestic focus this week. On Thursday 13th, the Office for National Statistics publishes its first estimate of second-quarter GDP, alongside the monthly GDP estimate for June.

June figures covering industrial production, services, construction output and international trade are also released on Thursday. Markets will assess whether the economy maintained momentum during the second quarter and how higher energy costs and geopolitical uncertainty have affected activity.

Eurozone

Industrial activity and economic growth will be the main focus across the Eurozone. June industrial production figures are due on Wednesday 12th, providing an update on conditions across the region’s manufacturing sector.

On Thursday 13th, Eurostat publishes its latest estimate of second-quarter GDP and employment, alongside June international trade figures. Markets will look for confirmation that the Eurozone economy continued to expand, while assessing the effect of higher energy prices on industrial output and external trade.

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.