Global markets stall as US bond yields linger near highs and Iran sanctions loom

Global markets pause on geopolitical and bond pressures

Global equity markets opened the week with muted trading on Monday, 24 August 2026, as investors evaluated elevated sovereign debt yields and multiple trade disputes. In Frankfurt, the Dax slipped 0.1% to 26,107 points after closing Friday at 26,136 points, while the EuroStoxx 50 lost 0.3% to trade at 6,444 points. In Asia, Tokyo's Nikkei finished at 65,968.71 points and the Shanghai Composite dropped 0.6% to 3,880.33 points. US government bond yields remained near their highest levels in 25 years. The yield on the 10-year US Treasury note decreased four basis points to 4.71%, while the 30-year bond yield traded at 5.24%, following a previous week where 30-year yields crossed 5% at auction. A report cited by CNBC indicated that the US Treasury General Account could be utilized alongside existing buyback programs to purchase government bonds.

US sanctions on Iran and North American trade tensions

Market participants monitored geopolitical policy actions in Washington. US Treasury Secretary Scott Bessent held a press conference detailing economic sanctions directed against Iran and its commercial partners, which the administration termed an economic campaign. In a guest article published by the Financial Times, Bessent cautioned countries maintaining trade relationships with Tehran regarding the economic risks.

They would be well advised to consider the consequences of that support.

Iranian President Masoud Pezeshkian rejected the sanctions program while advocating for a diplomatic settlement. Concurrently, trade friction expanded in North America after the collapse of bilateral negotiations between the United States and Canada. Following the implementation of new US tariffs, the Canadian government in Ottawa announced that it would enact retaliatory countermeasures. Energy markets responded to the economic framing of the conflict with lower crude prices. Brent crude fell more than 2.5% to $91.19 per barrel, easing slightly after climbing over 50% since the start of 2026 due to commercial shipping disruptions in the Strait of Hormuz.

European central bank assessment and economic calendar

Despite ongoing blockades affecting maritime transit through the Strait of Hormuz, European monetary authorities downplayed immediate risks of severe economic contraction. European Central Bank Executive Board member Piero Cipollone stated that current indicators do not indicate concurrent stagnation and high inflation.

We will naturally have to monitor changes in the macroeconomic environment, but currently there are no signs pointing to a stagflation scenario.

The financial calendar presents critical economic benchmarks over the coming days. Following minor indicator releases on Tuesday, the United States will publish the Personal Consumption Expenditures price index on Wednesday, which represents the Federal Reserve's primary inflation metric. Central bankers will convene in Jackson Hole, Wyoming, on Thursday, with Federal Reserve Chair Kevin Warsh scheduled to deliver a policy address on Friday.

Technology stocks slide under growing AI spending

Technology and artificial intelligence equities experienced broad selling across international exchanges. In Europe, semiconductor manufacturer Infineon lost 3.2%, Suss dropped 6.0%, and Aixtron declined 2.5%, alongside a 0.5% decrease for SAP. In Japan, Fujikura fell 3.5% and SoftBank dropped 3.3%, though Tokyo Electron gained 2.1%. Nomura Securities strategist Wataru Akiyama dismissed structural panic regarding the sector.

We regard concerns about the profitability of semiconductor companies merely as an excuse for selling.

Investor attention centered on high capital expenditure requirements across artificial intelligence developers ahead of quarterly earnings from Nvidia on Wednesday. E-commerce corporation Alibaba announced a $10.3 billion capital increase to fund rising artificial intelligence expenditures, while SoftBank prepared a $6.3 billion bond offering for its technology portfolio. Simultaneously, Nvidia scheduled a price increase of approximately 17% on selected artificial intelligence server systems, citing higher underlying memory component costs.