The US stock indices finished the session with solid gains following the release of weak labor‑market data

On Friday, US stock indices closed higher after labor‑market data came in worse than expected, weakening expectations for a Federal Reserve interest‑rate hike next month. By the end of the day, the Dow Jones (US30) rose by 0.28% (weekly +2.42%). The S&P 500 (US500) gained 0.62% (weekly +3.37%). The Tech‑heavy NASDAQ (US100) closed Friday in positive territory at 1.19% (weekly +5.11%). The main driver of optimism was the Labor Department report: nonfarm payrolls unexpectedly fell by 23,000 compared with the previous month. SpaceX shares (+15.8%) continued their rapid rally after Argus Research upgraded the stock to “Buy,” noting the company’s fast payback period on its artificial‑intelligence infrastructure investments. Palantir shares (+10.3%) extended gains following strong Q2 earnings and an upward revision of its 2026 outlook.

This week, US markets will focus on the July macroeconomic data block, with inflation figures holding key importance. Investors expect the Consumer Price Index (CPI) to rise by 0.1% after a 0.4% decline in June, while the core CPI may increase by 0.2% after remaining unchanged the previous month. On a yearly basis, headline inflation is expected to slow for the second consecutive month to 3.4%, and core inflation to 2.5%, indicating temporary easing of price pressures linked to the Iran factor. The Producer Price Index (PPI) is also expected to recover by 0.1% after a 0.3% drop, with its core component rising 0.2%. Additional insight into the economy will come from retail‑sales data, expected to increase by 0.2% (similar to June), while the preliminary University of Michigan Consumer Sentiment Index may show a slight deterioration.

The Canadian dollar (CAD) reached an eight‑week high at 1.39 per US dollar amid strong domestic macro data and a narrowing yield gap between Canadian and US government bonds. In July, employment in Canada increased by 75,100 versus expectations of only 15,000, while the unemployment rate fell to a two‑year low of 6.4%. These figures fueled speculation that the Bank of Canada may tighten monetary policy if energy prices remain elevated.

Germany’s DAX (DE40) rose by 0.69% (weekly +1.80%), France’s CAC 40 (FR40) closed up 0.17% (weekly +1.73%), Spain’s IBEX 35 (ES35) declined by 0.19% (weekly +1.30%), and the UK’s FTSE 100 (UK100) ended the session higher by 0.31% (weekly +0.30%). Industrial production in the Eurozone is expected to recover, having grown in four of the last five months. This week will also bring the second estimate of quarterly GDP, along with fresh employment and trade‑balance data.

On Friday, crude‑oil prices (WTI) rose by roughly 1%, closing at 78.2 dollars per barrel, though they still posted a significant weekly decline of more than 7%. Prices remain extremely sensitive to any news regarding a potential agreement between Iran and Oman, which could restore full shipping activity through the Strait of Hormuz and return millions of barrels of Middle Eastern oil to the global market. Despite diplomatic efforts, the regional situation remains tense. Abu Dhabi’s national oil company ADNOC reported attacks on three vessels passing through the strait, while Iran continued pursuing targets it considers hostile.
In Asia, Japan’s Nikkei 225 (JP225) fell by 0.12% (weekly +2.78%), China’s FTSE China 50 closed higher by 0.77% (weekly +2.88%), Hong Kong’s Hang Seng (HK50) gained 0.54% (weekly -1.23%), and Australia’s ASX 200 (AU200) closed Friday down 0.09% (weekly +3.52%).

Asia will see a series of important economic events this week. In Australia, the Reserve Bank (RBA) is widely expected to keep the benchmark rate at 4.35% amid slowing Q2 inflation, while investors will also assess business‑confidence and housing‑market indicators. In Japan, markets will analyze the Bank of Japan’s “Summary of Opinions” from the July meeting (where the rate was kept at 1%), along with PPI data, the current‑account surplus, bank lending, and machinery orders. In China, investor attention will focus on July inflation data: consumer prices are expected to rise 0.8% year‑over‑year (after 1% the previous month), while producer‑price inflation is predicted to slow to 3.8%. Markets will also examine monetary‑sector indicators, including current‑account data and new yuan loans, whose growth is expected to decline sharply compared with June volumes.