Weekly Market Review - 24-08-2026

Aug 24

5 min read

UK equities outperformed their US counterparts this week as energy and commodity-linked companies benefited from rising oil prices, while technology shares came under renewed pressure. We also examine higher UK inflation, strong gains across commodities and precious metals, speculation surrounding ECB President Christine Lagarde’s future, and the latest geopolitical developments between the UK, Ukraine and Russia.

Market Recap.

Global equity markets delivered mixed returns over the week, with UK shares outperforming their US counterparts. The FTSE 100 ETF rose 1.11%, supported by strength among energy and commodity-linked companies as oil prices climbed.

US markets moved lower as rising Treasury yields, persistent inflation concerns and renewed pressure on highly valued technology shares weighed on investor sentiment. The Dow Jones Industrial Average ETF fell 1.12%, while the S&P 500 ETF declined 1.66%. Technology stocks experienced the sharpest losses, with the Nasdaq 100 ETF falling 3.24% as investors reassessed valuations and reduced exposure ahead of major technology-sector earnings.

News.

The Scottish National Investment Bank reported a net loss of £138 million for the 2025–26 financial year following the failure or financial deterioration of several early investments. The total included £65 million of realised losses from M Squared Lasers, Trojan Energy and Krucial, alongside £85 million of unrealised losses linked to Orbex and Pneumowave entering administration.

Despite the losses, the state-owned development bank generated £32 million in income, covering its £20 million operating costs, and invested a record £374 million in Scottish businesses during the year. Chairman Willie Watt said the bank had tightened its investment processes and introduced stricter criteria for future investments.

Inflation.

UK inflation increased to a four-month high of 2.90% in July, up from 2.60% in June and remaining above the Bank of England’s 2.00% target. The increase was largely driven by a 13% rise in the household energy price cap, which contributed to the sharpest increase in gas prices for almost four years.

Services inflation also remained elevated, with rents rising 4.10%, internet services increasing 12.10% and car insurance costs up 8.40%. Food inflation eased to 1.30%, but continued pressure from energy and services is likely to reinforce expectations that the Bank of England will keep interest rates higher for longer.

Central Banks.

European Central Bank President Christine Lagarde could take over as president of the World Economic Forum in 2027, according to reports citing discussions among the organisation’s trustees. Lagarde, who already sits on the WEF’s board, reportedly thanked members for their confidence and said she was “ready to serve,” although no appointment or timetable has been confirmed.

Lagarde’s eight-year term at the ECB is due to end in October 2027, but the report has renewed speculation that she could leave the central bank early. Any accelerated departure would bring the ECB’s succession process into focus as policymakers continue to manage above-target inflation and uncertainty over the direction of interest rates.

Commodities.

Commodity markets remained volatile as continued disruption in the Strait of Hormuz and the prospect of tougher US sanctions against Iran kept global supply concerns elevated. Shipping activity through the waterway remained heavily restricted, while threats against countries purchasing Iranian oil added further pressure. US WTI crude ended the week up 5.66% at $87.06 per barrel, while Brent gained 6.63% to $94.39.

Precious metals also recorded strong gains. A weaker US dollar, concerns over rising government debt and plans to expand Treasury bond buybacks increased demand for safe-haven assets. Gold rose 5.56% to $4,624.10 per ounce, while silver gained 6.89% to $69.47.

ESG.

British politicians significantly overestimate public opposition to climate policies, according to research involving 100 Labour, Conservative and Liberal Democrat MPs. Politicians estimated that 18% of the public opposed grants for improving insulation in less energy-efficient homes, compared with an actual figure of 6%. They also believed 38% opposed environmental taxes on products, while polling showed opposition of 20%.

The study also found that MPs exaggerated differences between supporters of the main political parties, particularly the perceived scepticism of Conservative voters. Researchers warned that this “false polarisation” could restrict the range of climate measures politicians consider publicly acceptable and politically achievable.

Geopolitics.

The UK is expected to deepen its military support for Ukraine by sharing classified technical information on British components used in French-made SCALP long-range missiles. The move could allow Ukraine to produce and use the weapons more precisely against targets inside Russia, although the missiles would still rely heavily on US technology to operate at full effectiveness.

The announcement comes during Prime Minister Andy Burnham’s visit to Kyiv, where he reiterated the UK’s commitment to Ukraine. Russia condemned the plan and said it was taking measures to identify and destroy missile-production facilities, further increasing tensions between Moscow and London.

Week Ahead.

United States

Inflation data and Federal Reserve policy will be the main focus in the United States this week. Consumer Confidence, house prices and New Home Sales are released on Tuesday 25th, providing an update on household sentiment and the property market.

Wednesday 26th brings July’s PCE inflation figures, personal income and spending, Durable Goods Orders and the second estimate of second-quarter GDP. Initial Jobless Claims follow on Thursday 27th, before Federal Reserve Chair Kevin Warsh addresses the Jackson Hole Economic Symposium on Friday 28th. Markets will look for guidance on inflation and the likely direction of interest rates ahead of the Fed’s September meeting.

United Kingdom The UK economic calendar is quieter this week. The CBI Distributive Trades Survey is released on Wednesday 26th, providing an early indication of retail conditions and whether recent pressure on household finances is continuing to affect spending.

Nationwide’s August House Price Index follows on Friday 28th. The figures will offer an update on housing-market activity as buyers continue to face relatively high borrowing costs and uncertainty over the outlook for interest rates.

Eurozone

Business confidence, central bank policy and inflation will be the main focus across the Eurozone. Germany’s Ifo Business Climate Index is released on Tuesday 25th, followed by German consumer confidence and the European Central Bank’s latest monetary policy meeting accounts on Thursday 27th.

Friday 28th brings preliminary August inflation figures from France and Spain, German labour-market data and the European Commission’s Economic Sentiment Indicator. The releases will help markets assess whether higher energy costs are feeding into inflation and how the region’s economy is responding to the ECB’s tighter monetary policy.

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.