20/08/2026 Daily Reports
Daily Market Briefing — 20 August 2026
- Nasdaq. US indices rebounded on Wednesday after Treasury officials said they plan to increase buybacks of longer-dated Treasuries to ease borrowing costs, driving 30-year yields down 10 basis points to 5.18% and pushing the dollar to a three-month low. The Nasdaq Composite gained roughly 0.2%, snapping a three-day losing streak, while Moderna surged 176% on positive late-stage melanoma vaccine results with Merck. July FOMC minutes released Wednesday showed many participants judged that policy tightening would likely be necessary if inflation did not decline, with Hammack, Kashkari and Logan dissenting in favour of a quarter-point increase, and Chair Warsh floating a reduction from eight to six annual meetings, with no decision reached. Walmart’s quarterly results are due today.
- DAX. The index closed Wednesday at 26,091, down 0.14%, near two-week lows amid Middle East uncertainty and caution ahead of the FOMC minutes. Infineon (-3.65%), Rheinmetall (-2.83%) and MTU Aero Engines (-2.19%) led declines, while Volkswagen (+2.44%), SAP (+2.17%) and Porsche (+2.03%) advanced.
- Nikkei. The index fell 2.9% on Wednesday to around 65,150 as semiconductor selling intensified and Japan’s 10-year yield reached 30-year highs. In Thursday morning trading it rebounded sharply, with gains briefly exceeding 900 points following a near-3,900-point two-session decline, supported by the US Treasury buyback announcement. July exports rose 23.2% year-on-year, above the 19.9% forecast, with semiconductor equipment shipments up 49.1%; imports climbed 27.8%.
- Gold. Gold rose to $4,524/oz, its highest since June 2026, having traded near $4,325 on Wednesday after a near-2% drop the previous session tied to elevated global bond yields.
- Brent. Brent settled at $91.56 on Wednesday, up 0.92% and a fourth consecutive gain. The UAE suspended financial and economic transactions with Iran after alleging ballistic missile launches, while President Trump said no talks were underway. Three China-linked supertankers turned back in the Strait of Hormuz. US crude inventories rose 4.4 million barrels; distillates fell 1.5 million.
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Treasury Intervention Calms Bond Markets, Weighs on Dollar
- U.S. Treasury steps in: The Treasury announced that it will double the size of its long-duration bond buybacks to ease pressure on long-term yields.
- Bond yields retreat: The U.S. 30-year Treasury yield fell to 5.19%, while the 10-year yield declined to 4.65%. The 30-year yield had reached its highest level since 2007 earlier this week.
- Japanese bond yields also fall: The 20-year JGB yield dropped 7.5 bps, while the 10-year yield declined 4.5 bps.
- Debt concerns remain: Rising government debt across the U.S., Japan and Europe, elevated oil prices and heavy borrowing by technology companies continue to pressure bond markets.
- Dollar under pressure: The Dollar Index remained near a 2.5-month low at 98.86. EUR/USD traded around 1.1674, while GBP/USD stood near 1.3600.
- Fed remains in focus: Minutes from the latest Fed meeting showed growing concerns about inflation. Several policymakers were open to raising rates, while many said further tightening could be necessary if inflation fails to move toward the 2% target.
- Jackson Hole is the next key event: Markets are now looking ahead to Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium next week. Investors are currently not expecting a significantly hawkish message.
- Oil remains above $90: Brent crude traded at $91.92, while WTI stood at $85.81. Slowing shipping traffic through the Strait of Hormuz continues to keep supply risks elevated.
