GLOBAL MARKET CALL: Will Yen Yin Or Yang Financial Markets?

The Go Global investment strategy has outperformed Stay Home this year, and August has not changed that. Korea and Taiwan are back at the front of the performance rankings to start the month, with China lagging again.

Last week, Japan and the US jointly bought yen for the first time since 1998, following its fall to a near 40-year low of around 164 yen per dollar. US Treasury officials feared that the Japanese would be forced to sell US Treasuries to support their currency. The yen recovered to 157.94. Treasury Secretary Scott Bessent told CNBC on August 4 that "you can give market signals with intervention, but it's policy that turns it." Despite the noise, global financial markets didn't flinch on fears that the yen carry trade might unwind, as discussed further below.