Support Daily discussion thread for August 31, 2026
Crude oil prices advanced sharply following an escalation in US–Iran military strikes. Meanwhile, investors weigh a contraction in Chinese manufacturing, ongoing second-quarter corporate earnings, and upcoming global labour and economic reports.
Brent and WTI rose by over 2.8% as US–Iran strikes raised serious concerns over energy supply disruptions.
China’s August manufacturing PMI rose to 49.8, beating forecasts but remaining in contraction territory.
Dell, Broadcom, Palo Alto Networks, and Lululemon lead this week's US quarterly earnings reports.
Investors await key economic events, including US non-farm payrolls and the Bank of Canada (BoC) rate decision.
US and Iran resume bilateral attacks; oil prices rise
Global oil benchmarks rose in tandem amid renewed attacks between the United States and Iran in the Middle East. The Brent futures contract (BRNX6) advanced by 2.76% to $90.47 per barrel, while the West Texas Intermediate (WTI) futures contract (CLV6) appreciated by 2.89% to $85.79 per barrel.
According to reports by Reuters, the US attacked Iranian facilities on Larak Island over the weekend. In response, Tehran launched missiles at two US air bases in Jordan. Following the reciprocal strikes, the US President stated in an interview that Washington is going to "hit Iran very hard". Concurrently, Iranian officials declared that Tehran possesses sufficient military resources to respond forcefully.
These renewed tensions come as the US–Iran conflict reaches its six-month mark, raising concerns over persistent energy supply disruptions and escalating global inflationary pressures. In this context, Donald Trump stated on Sunday that the US had reached a deal with Venezuela to replenish the Strategic Petroleum Reserve, as quoted by Reuters. This could bolster US reserves, which have fallen to their lowest levels in approximately forty-four years.
Market participants are now focused on how these renewed tensions will unfold, given that both economies have been significantly affected. Simultaneously, maritime traffic through the Strait of Hormuz is showing signs of recovery, although it remains severely constrained compared with normal operational levels.
Chinese manufacturing PMI advances, but remains in contraction territory
According to data from the National Bureau of Statistics (NBS) of China, the manufacturing PMI increased from 49.2 in June to 49.8 in August, slightly exceeding analysts’ forecasts of 49.7 points. However, although the result came in as a positive surprise relative to expectations, the manufacturing PMI remained in contractionary territory as it printed below the 50-point threshold.
An analysis by Trading Economics suggests that two key components returned to expansionary territory: output (which rose from 49.9 in July to 50.4 in August) and new orders (which increased from 48.5 to 50.6). Conversely, employment declined from 49.0 to 48.7, while raw material inventories dropped from 48.3 to 48.1 points. Despite underlying improvements in production and new orders, Chinese domestic consumption and business sentiment exhibited weakness regarding China's overall economic performance.
Following the release of the data, the FTSE China A50 index fell marginally by 0.03% to 14,701 points during a highly volatile trading session in the equity market. Similarly, the Hang Seng index declined by 0.21% to 25,459 points.
Figure 1. China NBS Manufacturing PMI (2025–2026). Source: Data from the National Bureau of Statistics of China; chart obtained from Trading Economics.
Quarterly US financial results
The second-quarter 2026 earnings season continues this week. The following key corporate earnings are scheduled for release, which may contribute to further volatility across US equity markets:
Tuesday
- Palo Alto Networks Inc. (PANW)
- Dell Technologies Inc. (DELL)
Wednesday
- Broadcom Inc. (AVGO)
- Hewlett Packard Enterprise Co. (HPE)
Thursday
- Lululemon Athletica Inc. (LULU)
Key economic events this week
Several critical economic indicators are scheduled for release this week, with the following of particular importance to market participants:
Monday
- China: NBS Manufacturing PMI
- India: GDP Growth Rate
- Germany: Inflation Rate
Tuesday
- Japan: Consumer Confidence
- European Union: Inflation Rate
- US: ISM Manufacturing PMI
- US: JOLTS Job Openings
Wednesday
- Australia: GDP Growth Rate
- Canada: BoC Interest Rate Decision
- US: EIA Crude Oil Stocks Change
Thursday
- Australia: Balance of Trade
- US: ISM Services PMI
Friday
- US: Non-farm Payrolls
- US: Unemployment Rate
- Canada: Unemployment Rate
