August 2025 Market Wrap

August 2024 was volatile for global financial markets, primarily driven by uncertainty surrounding central bank policies, geopolitical tensions, and economic data.

• Central Bank Policies: The Federal Reserve and other major central banks continued to grapple with inflationary pressures. While there were some indications of a potential pivot towards a more dovish stance, concerns about inflation persistence kept markets on edge.
• Geopolitical Tensions: Ongoing geopolitical conflicts, such as those in Ukraine and the Middle East, contributed to market volatility. These tensions can disrupt supply chains, increase energy prices, and create uncertainty about global economic growth.
• Economic Data: Mixed economic data, including employment figures, inflation reports, and manufacturing indices, added to market uncertainty. Investors closely watched these indicators for signs of economic slowdown or recession.

Overall, the global financial markets in August 2024 were characterized by a delicate balance between hopes for economic recovery and concerns about ongoing challenges.

By: Alcral AG, Intelligence and Markets Research