Arkéa AM flags markets under pressure as central banks stay hawkish, US 10-year yield hits 5%
SPY•Markets remain under pressure as policy stays restrictive
Arkéa AM flagged sustained market pressure as central banks kept policy restrictive amid geopolitical risk and sticky inflation.
- Brent hovered around USD 100-104 a barrel, up 18% in a month, with Middle East risk offset by improved shipping through Hormuz.
- The Fed began a tightening cycle with a 25 bp hike; August CPI ran 0.4% m/m, while core CPI was 0.29%.
- Bond yields rose on inflation and public funding needs; the U.S. 10-year yield held near 5%, the Bund was at 3.52%, and France's 10-year yield was 4.57%.
- Equities diverged; the S&P 500 fell 0.08% for the week, the Nasdaq rose 0.94%, and the Euro Stoxx 50 dropped 1.41% amid rate-driven rotation.
