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Reuters reported that global stocks traded around record highs on August 14 2026 set for a third consecutive weekly gain after benign US inflation data lowered expectations for a Federal Reserve rate hike the following month. Faltering negotiations to resolve the Iran conflict drove oil prices higher with both oil and gas futures positioned for substantial weekly increases amid continued impasse and US warnings of expanded economic measures including a naval blockade. Investors displayed limited concern as short-dated bond yields increased only slightly inflation expectations eased further and gold advanced to two-month highs while the main focus stayed on artificial intelligence themes supported by recent strong corporate earnings.
The MSCI All-World index traded just below its all-time peaks according to Reuters while the STOXX 600 index in Europe finished a touch lower with declines in technology shares balanced by advances in defence and automaker stocks. Capital.com strategist Kyle Rodda told Reuters “The markets round out the week on a positive note with relatively thin event risk on the economic and corporate calendar. But of course it’s a Friday and the typical pattern has been for geopolitical risks or at least bombastic rhetoric to pick up between the US and Iran going into the weekend.” Rodda added that geopolitical uncertainty stood as the primary obstacle to a market benefiting from positive earnings and policy signals.
Brent crude futures held near 87 dollars per barrel on track for a 6 percent weekly increase Reuters figures showed while European natural gas contracts headed toward a 10 percent weekly rise and US gas futures targeted a 3.2 percent gain. The VIX volatility index prepared for a fourth straight weekly decline representing the longest such sequence since May 2025 as equity investor anxiety continued to subside and a bond market volatility gauge also moved toward a second weekly drop. John Sidawi senior portfolio manager for fixed income at Federated Hermes told Reuters that recent months had featured a notable gap between geopolitical tensions and subdued asset price volatility.
Sidawi stated according to Reuters “For now markets appear willing to tolerate a significant amount of uncertainty without demanding higher risk premiums. However this equilibrium is unlikely to be permanent.” He continued “A meaningful escalation in conflict or a clear path toward resolution could finally force investors off the sidelines potentially triggering a much larger volatility response than current market pricing implies.” Gold prices rose 0.1 percent to 4352 dollars an ounce and stood on course for the largest monthly gain since February as central banks and investors increased holdings amid reduced forecasts for aggressive US rate moves.
In currency markets the yen gained ground leaving the dollar 0.2 percent lower at 159.13 yen after a Reuters report citing three sources indicated the Bank of Japan might lift rates as soon as September. Padhraic Garvey head of global rates and debt strategy at ING told the news service that the yen’s weakness resulted from an ultra-cautious Bank of Japan and a policy rate that remained too low. Garvey added “This tension can be eased through rate hikes and the sooner the better while that could be construed as negative for the economy it’s also a choice. Prioritise the protection of the yen or not.”
European equities appeared set to conclude a four-week advance with the STOXX 600 index declining 0.04 percent Reuters data indicated as technology shares responded to reports of potential acquisitions and energy stocks drew support from the oil price movement. The broader market environment reflected sustained optimism tied to anticipated steady monetary policies from leading central banks. Additional reporting in the Reuters dispatch came from Ankur Banerjee in Singapore with editing by Sonali Paul Alex Richardson and Emilia Mithole-Matarise.
