Global Markets Wobble as Bond Selloff, Stalled US-Iran Talks Rattle Sentiment

Global equity and bond markets came under pressure on August 19 as a sustained government bond selloff weighed on stocks, with Dow, S&P 500, and Nasdaq futures all slipping and Asian equities falling. Hong Kong stocks declined as rising bond yields combined with a stalemate in US-Iran negotiations dented investor sentiment. The breakdown in US-Iran talks pushed crude oil prices higher, which in turn fueled bets on further Federal Reserve interest rate hikes.

Gold and silver fell on India's MCX in morning trade as elevated oil prices and the prospect of tighter Fed policy pressured precious metals, though a softer dollar index limited losses. Treasury yields eased somewhat later in the session, offering gold modest support. Markets were closely watching the release of Federal Reserve meeting minutes for fresh signals on the September policy outlook, with elevated yields continuing to be the dominant pressure on bullion prices.