Global markets are navigating a complicated mix of geopolitical tensions, rising fiscal risks and renewed volatility in technology stocks.
Fresh US sanctions on Iran – and the threat of secondary sanctions – could further strain relations with China, while Washington is considering using Treasury cash to expand bond buybacks and ease pressure on long-term borrowing costs. That may support bonds and equity valuations in the short run, but could also complicate the Federal Reserve’s inflation fight.
Meanwhile, investors are increasingly turning toward hard assets. Gold is pushing higher as a hedge against fiscal, inflation and geopolitical risks, while copper remains supported by tight physical markets, strong demand from electrification and AI infrastructure, and backwardation. All eyes now turn to US PCE inflation and Kevin Warsh’s Jackson Hole speech for clues on how the Fed will respond to this increasingly complex policy backdrop.
Watch the full episode to find out more!
Intro0:59 Market update
3:10 How will US Treasury actions impact markets?
5:12 Nice setup for gold, hard commodities
