π° Hourly Briefing | 2026-08-18 16:00 CST
Bond selloff spreads to the eurozone, German 10Y yield hits 3.2478% - highest since 2011, 30Y bund sale looming; Brent breaks above $90, Houthi drone attack on Saudi Aramco's Jazan refinery reported; US stock futures fall on higher yields and oil prices, Korean stocks snap five-day winning streak.
π Market Snapshot
- Spot Gold XAUUSD: 4395.68 (-0.47% β), Open 4417.71, High 4436.18, Low 4386.19
- WTI Crude USOIL: 84.27 (+0.23%), Open 84.040, High 84.774, Low 83.710
π₯ Key News This Hour
- Bond selloff spreads to eurozone: Germany’s upcoming 30-year bund auction expected to see yields at their highest since 2011; German 10Y yield rises to 3.2478%, highest since May 2011; French 10Y breaks above 4.0%, eurozone bonds join the global fixed-income selloff.
- Oil surges: with dimming ceasefire prospects and fading hopes for reopening the Strait of Hormuz, Brent tops $90 to $91.04; Houthi forces reportedly launched drone strikes on Saudi Aramco’s Jazan refinery (unconfirmed by Saudi authorities).
- US stock futures decline: rising Treasury yields and surging oil prices unsettle investors, Nasdaq 100 futures down 0.7% intraday, S&P 500 futures down 0.4%.
- Russia-Ukraine conflict escalates: Ukraine launches at least 620 drones in a second consecutive night of mass strikes on the Moscow region, one of the largest such attacks; Iran’s IRGC deputy commander says over 200 enemy aircraft have been shot down.
- Korean stocks end five-day winning streak: KOSPI closes down over 1% as surging bond yields weigh on sentiment.
- Analysts warn: rapidly rising US Treasury yields could hit Asia’s AI-driven stock rally, as tech firms are vulnerable to higher financing costs.
- A-shares close mixed: Shanghai Composite +0.19%, Shenzhen Component -0.56%, ChiNext -0.92%; Hua Hong Semiconductor plunges over 10% into the close; southbound net buying reaches 13 billion yuan.
- LME copper cash/3M spread touches $110, the highest since 2021.
π§ Market Assessment
The bond market is the biggest marginal change this hour - the selloff has spread from US and Japanese bonds to the eurozone, with a German 30-year auction looming and 10Y yields at 15-year highs.
Higher yields combined with oil above $90 put dual pressure on equities, with US stock futures already down 0.4%-0.7% in premarket.
Geopolitical risk is heating up again: fading Hormuz ceasefire expectations, Houthi attacks on Saudi oil facilities, and escalating Russia-Ukraine drone warfare support oil’s strength via supply uncertainty.
Asian markets have already weakened (Korea’s streak ended, A-shares mixed); if US yields keep climbing tonight, high-valuation tech stocks face the most pressure.
β° Upcoming Key Data
- Tonight 22:00: large FX option expiries (EUR/USD, GBP/USD, etc.)
- Jackson Hole global central bank symposium approaching (watch Powell’s tone)
- NVIDIA earnings approaching (AI sector bellwether)
- Watch bond yield and oil price linkage after US market open