Market Review August 21: Bitcoin Above $76,000, Gold Surges to $4,562, Walmart Report Crashes Retailers
As of daytime trading on August 21, global markets are trying to stabilize after a sell-off on Wall Street. The main factors remain rising government bond yields, expensive oil, tensions around Iran, and a weakening dollar.
As of daytime trading on August 21, global markets are trying to stabilize after a sell-off on Wall Street. The main factors remain rising government bond yields, expensive oil, tensions around Iran, and a weakening dollar. The global stock index is ending its worst week since mid-July due to fears that rising energy costs will again fuel inflation.
US Under Pressure from Walmart Report, Europe and Asia Hesitant
US: The market closed lower on August 20. Walmart’s collapse (-9.2%) due to weak sales dragged down retailers Costco and Target. Deere, on the other hand, rose 6.9% on a strong forecast. Ahead of the August 21 open, futures are up (Nasdaq 100 +0.5%), with markets awaiting PMI data.
Europe and Asia: The STOXX 600 is up 0.2% amid strong PMI readings (Germany 54.1). In Asia, the Hang Seng gained 1.1%, Kospi +0.9%, while the Nikkei 225 fell 0.3% (down 4% for the week) due to accelerating inflation in Japan to 1.8% and expectations of a rate hike by the Bank of Japan.
Gold Peaks at $4,562, Brent Holds $93.61 After Rally
Commodities and Oil: Brent is slightly correcting to $93.61 per barrel but is up 5.8% for the week. Problems in the Strait of Hormuz (traffic halved) and risks of sanctions against Iran keep the premium elevated.
Precious Metals: Gold rose 1% to a 3-month high of $4,562.86/ounce (+4.2% for the week). Silver jumped 1.8% ($69.31), platinum up 2.6% ($1,875.75). Demand is fueled by a weakening dollar and US government debt risks.
Bitcoin Soars Above $76,000, Dollar Drops to 3-Month Low
Bonds and DXY: The US Treasury debt buyback provided only a temporary effect: 10-year Treasury yields returned to 4.71%, 30-year to 5.25%. The dollar index DXY fell to 98.72 (-0.94% for the week) amid concerns over ballooning government debt.
Cryptocurrencies: Bitcoin broke through the $76,000 level ($76,446, +6% for the day). The weekly gain was 20% — the best result in two and a half years amid the DXY decline and a shift to alternative assets.
Main Focus of the August 21 Session:
Manufacturing PMI expected at 53.7 and Services PMI at 53.8. Strong data will again heat up Treasury yields.
| Region / Asset | Key Event / Indicator |
|---|---|
| Eurozone | Composite PMI rose to 52.1 points — highest since November |
| Japan | Inflation accelerated to 1.8%, increasing chances of a September rate hike |
| Crypto Volatility | After a 20% weekly surge in BTC, the risk of a local profit-taking increases |
The main market contradiction on August 21 is the simultaneous rise in inflation risks and weakening of the dollar. Expensive oil and high bond yields pressure stocks, especially consumer and tech companies. At the same time, capital flows into gold, commodity companies, and cryptocurrencies. Throughout the day, the main focus will be on the preliminary US PMI. Strong data could push yields higher and put new pressure on the stock market. Weak figures may support gold and stocks but will also increase concerns about a slowdown in the US economy.