Arkea AM sees markets under pressure as central banks stay hawkish, US 10-year yield nears 5%

Arkea AM flagged sustained market pressure as central banks kept policy restrictive amid geopolitical risk and sticky inflation. Brent hovered around USD 100-104 a barrel, up 18% in a month, with Middle East risk offset by improved shipping through Hormuz. Fed began a tightening cycle with a 25 bp hike; August CPI ran 0.4% m/m, core CPI 0.29%. Bond yields rose on inflation and public funding needs; U.S. 10-year held near 5%, Bund at 3.52%, France 10-year at 4.57%. Equities diverged; S&P 500 fell 0.08% weekly, Nasdaq rose 0.94%, Euro Stoxx 50 dropped 1.41% amid rate-driven rotation.