Weekly Market Insights (31 July - 07 Aug 2026)

Aug 10
3 min read

Global Markets

Global markets finished the week stronger overall, supported by softer US labour market data, improved investor sentiment, and reduced expectations of further Federal Reserve tightening.

Equities:
- US equities led global gains, with strong advances in the Nasdaq, S&P 500, and Dow Jones as lower rate-hike expectations benefited growth and technology stocks.
- European markets advanced, with Germany’s DAX outperforming on strong corporate earnings and better-than-expected industrial data.
- Asian markets were mixed, with Japan gaining on technology strength while Hong Kong underperformed due to weakness in financial stocks.
- Australian equities were among the strongest-performing developed markets, supported by gains in mining, financial, and consumer sectors as export and trade conditions improved.
Bonds:
- US, UK, and Chinese government bond yields declined, reflecting softer policy expectations and continued demand for government securities.
- Australian bond yields rose, indicating ongoing concerns about domestic inflation and the potential for rates to remain elevated.
Currencies:
- The US dollar weakened broadly, as softer employment data reduced expectations for additional Fed tightening.
- The euro, Australian dollar, and Chinese yuan all strengthened against the weaker greenback.

Commodities

Commodity markets produced mixed results, with metals and soft commodities outperforming while energy markets weakened.

Gold surged 7.4%, supported by lower Treasury yields and continued demand for safe-haven assets.
Copper and aluminium gained, reflecting improving demand expectations and ongoing supply constraints.
Cocoa rose strongly, while coffee prices remained elevated despite a weekly decline, as weather and supply concerns continued to influence agricultural markets.
Energy commodities weakened, with crude oil, natural gas, and coal all declining as shipping conditions improved and fears of supply disruptions eased.

PNG Local Market

PNG’s market remained stable but quiet, with significantly lower trading activity than previous weeks.

Stock Market:
- Total market turnover was approximately K161,000 from 32,458 shares traded, indicating subdued market participation.
- CCP accounted for the largest share of traded value, while KSL recorded the highest traded volume among active securities.
- Share price movements were limited:
  - STO was the only stock to record a gain, rising 0.22% to K22.55.
  - KSL declined 3.28%, making it the weakest performer.
  - NGP eased 0.59%, while BSP, CCP, and PLC were unchanged.
- Overall trading activity remained concentrated in a small number of stocks with minimal price volatility.
Corporate Update:
- BSP Financial Group confirmed it will release its FY2026 Half-Year Results on 21 August 2026, followed by an investor briefing hosted by senior management.

Treasury Bills

The Treasury Bill market remained stable and well supported, with yields showing almost no movement.

The Government issued K270 million in Treasury Bills against K256.69 million in maturities, resulting in a modest net liquidity absorption of K13.31 million.
Yield movements were minimal:
- 182-day: 4.84% (-0.01%)
- 273-day: 5.04% (unchanged)
- 364-day: 5.03% (unchanged)
The 364-day tenor accounted for the majority of issuance, reflecting continued government reliance on longer-term domestic funding.
Stable auction results indicate continued investor confidence in government securities despite ongoing liquidity absorption.

Overall Takeaway

Global markets benefited from softer US economic data, a weaker US dollar, falling bond yields, and stronger risk sentiment, resulting in broad gains across major equity markets. Commodity markets were mixed, with precious metals and selected agricultural products outperforming energy. In PNG, the market remained stable but subdued, with limited equity activity and steady Treasury Bill demand continuing to support confidence in government securities.

For a detailed breakdown of market performance, economic data, and treasury auction results, download the complete report.