In August, global markets continued their upward trajectory, albeit in a context marked by contrasting signals.
In the United States, equity indices reached new all-time highs, supported by the strength of the technology sector, solid corporate earnings, and expectations of monetary easing before year-end. In Europe, performance was more uneven: while some macroeconomic data improved, political uncertainty weighed on sentiment. Meanwhile, Asian markets delivered particularly strong results, boosted by capital inflows and government stimulus, despite ongoing weakness in manufacturing. At the same time, gold consolidated its role as a safe-haven asset.
In the U.S., the S&P 500 advanced by around +1.9% during the month, driven by technology stocks and improved earnings sentiment. The Nasdaq Composite outperformed, hitting new records on the back of artificial intelligence enthusiasm and declining bond yields. The Dow Jones Industrial Average also reached fresh highs, ending the month on a strong note, though with a more selective performance. Overall, Wall Street reaffirmed both resilience and global leadership, underpinned by expectations of a more accommodative Federal Reserve.
In Asia, markets enjoyed a particularly positive month. Japan’s Nikkei 225 climbed to new all-time highs, supported by the strength of technology stocks and the ongoing depreciation of the yen, which continues to enhance export competitiveness. In China, both the CSI 300 and the Shanghai Composite rose by nearly +9%, boosted by robust hedge fund inflows and improved trade prospects with the United States. However, macroeconomic challenges remain: Chinese manufacturing activity contracted for the fifth consecutive month in August, while South Korea’s PMI marked its seventh straight decline, highlighting structural weaknesses in the industrial sector.
In Europe, performance was more mixed. Germany’s DAX benefited from defensive sectors and solid corporate earnings, closing the month in positive territory. France’s CAC 40, by contrast, dipped during periods of heightened political uncertainty, reflecting concerns over government stability. The UK’s FTSE 100 reached record highs in mid-August, supported by consumer stocks and exporters favored by the weaker pound. However, it corrected sharply in the final weeks, posting one of its weakest weekly performances in recent months. On the macro front, the Eurozone composite PMI rose to 51.1, the highest level in over a year, signaling a return to growth—though at a moderate pace.
Gold ended August with a gain of roughly +4.7%, trading around USD 3,447 per ounce. The rally was driven by expectations of rate cuts and renewed demand for safe-haven assets in a climate of political and trade-related uncertainty. Both financial and physical demand reinforced gold’s central role in investor portfolios.
In summary, August confirmed a broadly constructive backdrop for global markets. The U.S. and Asia led the advance, powered by technology stocks and government stimulus, while Europe lagged due to political risks and sensitivity to ECB policy. Nonetheless, key uncertainties remain: Asian manufacturing weakness, trade and geopolitical tensions, and the trajectory of central bank policies will continue to shape market dynamics in the months ahead.