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Global bond markets finally found their footing last week, and currency markets followed suit.

The relentless sell-off in government bonds worldwide remained the dominant force in financial markets last week.

The steady grind higher in bond yields worldwide continues to be the central development for financial markets.

The Federal Reserve's September meeting delivered an interest rate hike and unmistakably hawkish message last week, making it clear that the central bank is squarely focused on bringing down inflation.

The latest flare up in tensions between the US and Iran failed to trigger any significant safe haven flows in currency markets, or in any financial markets for that matter.

The half time whistle has sounded on 2026, drawing to a close an eventful first six months of the year that will predominantly be remembered for the elevated geopolitical risk premium associated with the Iran war.

The dollar rally that has lasted since early May seems to be petering out.
A pull back in risk sentiment saw stocks markets drop globally last week, led by the big winners of the last few years, technology companies.
The Fed, now under the stewardship of the new chair Kevin Warsh, seems considerably more concerned about inflation than markets expected, if his first press conference at the helm is anything to go by.
Markets have been cheering the US-Iran framework deal to end their conflict, which sent oil prices to the lowest levels since the early days of the conflict.
Stock markets reacted to the strong US payroll report with a sell-off that accelerated into Friday's close.
Investors will be forgiven for having half an eye on the sports pages this month as the 2026 FIFA World Cup kicks off, bringing the usual mix of drama and excitement. That said, financial markets are set to serve up a spectacle of their own.
