US labels Lebanon's Hezbollah as "Iranian proxy"

21. Aug 2026

(AWP Alliance News) - Oil traded flat and European equities were called slightly lower, as the US doubled down on sanctions against Iran-aligned militant group Hezbollah.

Here is what you need to know before the European market open on Friday:

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MARKETS

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CAC 40: called down 0.4 points, marginally lower, at 8,452.69

DAX 40: called down 9.5 points, marginally lower, at 25,973.54

FTSE 100: called down 1.5 points, marginally lower, at 10,746.66

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Hang Seng: up 0.7% at 25,883.24

Nikkei 225: down 0.4% at 65,924.33

S&P/ASX 200: down 0.4% at 9,047.80

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DJIA: closed down 703.84 points, 1.3%, at 52,759.21

S&P 500: closed down 66.82 points, 0.9%, at 7,641.16

Nasdaq Composite: closed down 263.92 points, 1.0%, at 26,067.17

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US 10-year Treasury yield: 4.71% (4.70%)

US 30-year Treasury yield: 5.26% (5.26%)

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EUR: up at USD1.1692 (USD1.1678)

GBP: up at USD1.3641 (USD1.3634)

USD: up at JPY159.01 (JPY158.87)

GOLD: up at USD4,545.70 per ounce (USD4,518.45)

OIL (Brent): flat at USD93.53 a barrel (USD93.53)

(changes since previous London equities close)

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ECONOMIC CALENDAR

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Friday 21 August

09:00 AEST Australia flash composite PMI

07:00 EDT Canada CFIB business barometer

08:30 EDT Canada retail sales

10:30 EDT Canada BoC senior loan officer survey

10:00 CEST eurozone flash composite PMI

16:00 CEST eurozone consumer confidence

08:45 CEST France business confidence

08:45 CEST France business climate indicator

09:15 CEST France flash composite PMI

09:30 CEST Germany flash composite PMI

11:00 IST Ireland wholesale prices

08:30 JST Japan CPI

09:30 JST Japan flash composite PMI

00:01 BST UK consumer confidence

07:00 BST UK retail sales

07:00 BST UK public sector net borrowing

09:30 BST UK flash composite PMI

09:45 EDT US flash composite PMI

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TOP ECONOMIC NEWS

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The US announced new sanctions Thursday against an alleged Hezbollah financing network, while highlighting the Lebanese armed group's close ties to Iran's Revolutionary Guards. The change comes as the US facilitates direct negotiations between Israel and Lebanon, which remain technically at war. Hezbollah rejects these talks. The new redesignation "specifies that Hezbollah is an Iranian proxy, not a stand-alone operation as implied by the previous designation," a State Department official said. Hezbollah drew Lebanon into the broader Middle East war in March with rocket fire at Israel in support of its backer Iran. Israel responded with a heavy air campaign and ground invasion that Lebanese authorities say have killed more than 4,300 people. The new sanctions target 10 people who are allegedly part of a network that transfers cash to Hezbollah, which has already been punished with US sanctions many times, the Treasury statement said.

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The US on Thursday warned allies and China to join President Donald Trump's new campaign to isolate the Iranian economy, vowing that Washington would "collapse this regime" in Tehran. Iran branded the US threats as "economic terrorism" and said they would fail. Trump had on Wednesday promised the "most crushing" economic operation ever against Iran. US Treasury Secretary Scott Bessent echoed the president's comments, and said he would give more details during a press conference on Monday. The US treasury boss indicated the economic plan meant the US is less likely to have to return to heavy military operations against Iran, which has dismissed Trump's plan.

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The Panama Canal will cut the number of ships passing through it starting next month because of drought caused by the El Nino phenomenon, the operator of the strategic waterway linking the Atlantic and Pacific said Thursday. From September 3, the number of vessels allowed through each day will fall from 36 to 34 due to low water levels in two artificial lakes that feed the canal, the Panama Canal Authority said. It will drop to 32 from September 15 on. The canal operator said Thursday that with the upcoming reduction, waiting times for ships trying to get through without making a reservation beforehand will increase. Nine of 10 ships using the canal do so with a reservation, and the remaining slots are auctioned off. Before the Iran war the average winning bid in these auctions was USD135,000. But in April one shipping company eager to use the canal paid USD4 million. The operator said it does not rule out further restrictions on shipping.

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Japan's private sector activity picked up in August, according to a flash purchasing managers' index reading. S&P Global's flash composite PMI rose to 53.4 in August, from July's final tally of 52.7. Climbing further above the 50 point no change mark, the data suggests growth in Japan's private sector picked up. Activity accelerated in both the services and manufacturing sector, which together make up the composite reading. The flash services PMI rose to 52.3 in August, from 51.2 in July. The manufacturing PMI picked up to 55.1 in August from 54.5 in July.

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Australia's private sector registered another month of growth in August, according to a preliminary reading, but at a slower pace. The S&P Global flash composite PMI fell to 52.5 in August, from 53.2 in July. "Although down slightly from 53.2 in July, the latest reading marked a three-month period of uninterrupted growth in private sector output and signalled an upturn that was moderate in nature," S&P Global said. The flash services PMI declined to 52.9 in August from 53.6 in July. The manufacturing PMI was steady at 52.0.

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The US and Canada are "very close" to a final trade deal, the top Canadian negotiator said Thursday after talks with President Donald Trump's team. Canada's Dominic LeBlanc met for three hours in Washington with US Trade Representative Jamieson Greer, as both countries push to finalize an agreement to avert new tariffs threatened by Trump. "We're very close. We continue to make progress, and we're going to stay here and do the work that's necessary until we get to that point," LeBlanc told reporters after leaving Greer's office. Details of the prospective agreement remain unclear, but Prime Minister Mark Carney on Wednesday updated the leaders of Canada's provinces and territories on the negotiations. Carney also asked provinces to ensure they remove any language in procurement policies that "specifically excludes the US". The premiers declined to discuss what US tariff reductions are being discussed, but certain Canadian goods will still face duties when entering the US, premiers said.

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A US Census Bureau report claiming more than 20,000 noncitizens voted in the 2020 presidential election has raised doubts over the impartiality of the influential but normally non-partisan agency. The bureau's analysis stating with "high confidence" that around 24,000 noncitizens voted in 2020 was pounced on by Trump as clear evidence to back his claims. However, experts and former Census Bureau officials have raised serious doubts about the accuracy of the document. Experts cited by AFP said even if all 24,000 votes were proven to have been cast by noncitizens, that figure accounts for less than 0.02% of the roughly 160 million votes in 2020 and would not have changed the outcome of the election.

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US Secretary of State Marco Rubio announced a new wave of sanctions targeting Cuban entities on Thursday, including the country's Ministry of Construction. Several state-owned enterprises working in the metals and mining sector, which "sustain the regime's repressive apparatus through control of key economic sectors," were also sanctioned, Rubio said. The Trump administration launched a new pressure campaign against Cuba's communist government in January, following the toppling of Venezuela's Nicolas Maduro, a close ally of Havana. The Trump administration has accused Cuba of threatening American national security by aiding adversaries such as Russia, China and Iran, but has more recently emphasized Havana's alleged ties with left-wing movements in the US.

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COMPANY CALENDAR

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Ameriprise Financial Inc - dividend payment date

Hunting PLC - half year results

Ocean Wilsons Holdings Ltd - dividend payment date

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TOP COMPANY NEWS

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Abbott Laboratories said it had reached an agreement to resolve a portion of litigation concerning its specialty formulas for preterm infants for a total of USD670 million. The Chicago-based pharmaceutical maker maintained the safety of its preterm infant formulas while resolving the Gill case and claims involving roughly 2,000 other individuals. "These agreements are a compromise of disputed claims and not in any way an admission of liability," said the company.

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Holcim said it has agreed to buy European provider of sustainable walling and flooring solutions Fermacell from Dublin-based building materials company James Hardie Industries for EUR840 million. The Zug, Switzerland-based building materials company said the acquisition expands its offering in European walling, flooring and fire protection.

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Ross Stores on Thursday raised sales guidance after a stronger-than-expected second quarter which it said was supported by higher consumer spending related to tax refunds. The Dublin, California-based discount retailer said net earnings increased to USD851.3 million in the quarter ended August 1 from USD508.0 million the year prior. Diluted earnings per share jumped to USD2.66 from USD1.56, including an around USD0.60 per share benefit from tariff refunds, above guidance of USD1.85 to USD1.93. Revenue grew 13% to USD6.26 billion from USD5.53 billion, beating USD6.15 billion market consensus.

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Netwealth Group subsidiaries Netwealth Superannuation Services Pty Ltd and Netwealth Investments Ltd contravened the Corporations Act in relation to the First Guardian Master Fund managed investment scheme, according to the Australian Securities & Investment Commission. The Melbourne, Australia-based wealth management and platform provider "failed to obtain and assess sufficient information about First Guardian, failed to make sufficient independent enquiries to understand or evaluate the investment risk of First Guardian before and while offering it to members, and did not inform members of the potential illiquidity of First Guardian."

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Fielmann Group revised its guidance downward for the 2026 financial year. The Fielmann, a Hamburg, Germany-based eyewear retailer, said ongoing German consumer uncertainty "is weighing on household purchasing power and consumer confidence, with relevant consumer climate indicators remaining at low levels." Fielmann now expects adjusted earnings before tax margin of around 12% compared with 12% to 13% previously. The company expects year-on-year sales growth of 2% to 5%, down from 5% to 7% previously.

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Amazon.com announced that it would invest USD2 billion in Latin American productions for its Prime Video streaming service through 2030, riding a wave of viewing momentum in the region. Amazon said it aimed to double original productions from Mexico, Brazil, Argentina, Colombia and Chile. Rival Netflix is also working to boost original Latin American content, with recent productions in Colombia and Argentina.

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By Holly Munks, Alliance News reporter

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