Rolling with the Punches

More political turmoil and a sharp rise in geopolitical tension characterized the month of August. Provocations between the U.S. and North Korea ratcheted higher, particularly when the latter red a missile that traveled over Japan. Meanwhile, the Trump administration faced more turmoil, with staff departures and falling approval ratings.

Global growth data surprised to the upside, but inflation pressures remained subdued. Growth in the U.S. and Japan was higher than expected, though inflation remained so in both countries.