The S&P500 and STOXX Europe 600 indices declined by a little over 2% during the month, marking the end of five consecutive months of gains for the North American index. It’s worth noting that there was significant volatility during the month, as both indices experienced a 5.45% variation between their monthly highs and lows. This was primarily due to a resurgence in inflation in August, driven mainly by wage increases. Global trade statistics continue to deteriorate, corporate bankruptcies are returning to 2016 levels, and consumer confidence is declining.

Meanwhile, the bond market is moving in a mixed manner. European long-term interest rates are hovering around pivot points, while the 10-year US Treasury yield continues to rise, surpassing 4% for the first time since 2008. This development can be attributed to the return of inflation and a reduction in central bank balance sheets.

Regarding the foreign exchange market, the Dollar Index (which measures the US dollar against a basket of international currencies) is beginning, as anticipated, an upward phase. This trend may seem paradoxical given the news of the month and the global “de-dollarization” efforts. Indeed, the BRICS group has expanded from 5 to 11 members, with the intention, among other things, of no longer conducting trade in US dollars and establishing a new monetary system that is not centered around the currency of Uncle Sam.

Finally, in terms of commodities, the upward trend continues for WTI crude oil, although with significantly less fluctuation. As a result of this increase, the black gold is now at a new annual high. As for the price of gold, it continues its consolidation phase within a horizontal channel defined by the $1,900 to $2,000 range.