Global markets declined over the week ending 11 September, as a hotter-than-expected monthly core CPI reading reinforced expectations for a Federal Reserve rate hike at its September meeting. August headline CPI rose 0.4% month on month and 3.4% year on year, while core CPI increased 0.3% month on month, above the 0.2% consensus expectation. The U.S. Bureau of Labor Statistics released the August Producer Price Index (PPI) on 10 September 2026, with headline final-demand PPI rising 5.4% year on year and final demand less foods, energy and trade services rising 4.7% year on year. U.S. equities fell across the board, with the Dow Jones Industrial Average down 1.57%, the S&P 500 down 0.80% and the NASDAQ Composite down 0.66%.
European equities also declined, with the FTSE 100 (-1.67%), STOXX Europe 600 (-1.66%) and CAC 40 (-1.20%) all lower. The European Central Bank delivered an expected 25 basis point increase, taking its deposit rate to 2.50% following an energy-driven spike in euro area inflation. Asian markets were weaker, with the Nikkei 225 down 1.55%, the CSI 300 down 0.83% and the Hang Seng down 3.30%. The yen strengthened, with USD/JPY closing at 153.58.
Commodity markets diverged. Brent crude rose 8.65% to USD 104.61 a barrel as heightened tension around the Strait of Hormuz raised concerns over Middle East energy supply, while gold declined 1.51% to USD 4,408.90 per ounce as higher expected policy rates weighed on non-yielding assets.
Market Snapshot
Weekly performance across major global indices (week ending 11 Sep 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 52,573.29 | -1.57% | ▼ |
| S&P 500 | 7,656.98 | -0.80% | ▼ |
| NASDAQ Composite | 26,333.04 | -0.66% | ▼ |
| FTSE 100 (UK) | 10,650.44 | -1.67% | ▼ |
| CAC 40 (France) | 8,179.77 | -1.20% | ▼ |
| STOXX Europe 600 | 639.10 | -1.66% | ▼ |
| Nikkei 225 (Japan) | 64,011.34 | -1.55% | ▼ |
| CSI 300 (China) | 4,510.16 | -0.83% | ▼ |
| Hang Seng (Hong Kong) | 24,805.63 | -3.30% | ▼ |
| Brent Crude | 104.61 | +8.65% | ▲ |
| Gold | 4,408.90 | -1.51% | ▼ |
Foreign Exchange
(For the week ending 11 Sep 2026)
| Pair | Friday’s Close | Week’s Change (%) |
| EUR/USD | 1.1601 | -0.13 |
| USD/JPY | 153.58 | -1.72 |
| GBP/USD | 1.3526 | +0.06 |
| USD/CHF | 0.8164 | +0.78 |
| AUD/USD | 0.7156 | -0.67 |
U.S. Markets Overview
Major U.S. equity indices finished the week lower, with the Dow Jones Industrial Average declining 1.57%, the S&P 500 falling 0.80% and the NASDAQ Composite easing 0.66%. Market attention centred on the August inflation data. The Consumer Price Index showed headline inflation rising to 3.4% year on year (0.4% month on month), while core CPI rose 0.3% month on month, above the 0.2% expected. The U.S. Bureau of Labor Statistics released the August Producer Price Index on 10 September 2026, with headline PPI rising to 5.4% year on year and core PPI reaching 4.7% year on year, signalling a rebound in upstream inflationary pressures. The hotter-than-expected core readings shifted market expectations strongly toward a Federal Reserve interest rate hike at its upcoming September meeting, weighing on equity valuations across sectors.
European Markets
European equities declined over the week, with the FTSE 100 falling 1.67%, the STOXX Europe 600 easing 1.66% and the CAC 40 slipping 1.20%. The European Central Bank delivered an expected 25 basis point rate increase, bringing its deposit rate to 2.50% following an energy-driven spike in euro area inflation. Energy costs remained a central theme for the region, with European TTF natural gas prices reaching their highest level since 2022 and diesel prices coming under significant upward pressure amid heightened tension around the Strait of Hormuz, adding directly to industrial production cost pressure across the continent.
Rising energy costs became an additional concern for European industry as tensions in the Middle East pushed natural gas and oil prices sharply higher.
Asian Markets
Japan: Japanese equities declined, with the Nikkei 225 falling 1.55% over the week to close at 64,011.34. The yen strengthened, with USD/JPY falling 1.72% to close at 153.58, moving further away from the JPY 160 level.
China: Chinese markets declined, with the CSI 300 falling 0.83% and the Hang Seng Index dropping 3.30% over the week to close at 24,805.63. Hong Kong led regional declines as higher global policy-rate expectations weighed on rate-sensitive sectors.
The Hang Seng declined 3.30% to 24,805.63, making it the weakest major Asian index in the supplied data for the week.
Commodities
Oil (Brent Crude Futures): Brent crude futures (BZ=F) settled at USD 104.61 a barrel, up 8.65% from the previous Friday, as heightened geopolitical tension around the Strait of Hormuz raised concerns over Middle East energy supply.
Gold (U.S. Gold Futures): U.S. gold futures (GC=F) settled at USD 4,408.90 per ounce, down 1.51% from the previous Friday, as higher expected policy rates weighed on non-yielding assets following the August inflation data.
Week Ahead
Points of focus flowing from the week’s developments:
- Federal Reserve policy: The hotter-than-expected August core CPI reading has strengthened market expectations for a rate hike at the upcoming September meeting. The decision and accompanying commentary will be the central focus for markets.
- U.S. equities: All three major indices declined as higher policy-rate expectations weighed on valuations. The coming week will test how much further repricing risk assets absorb ahead of the Fed decision.
- European policy and energy costs: With the ECB deposit rate now at 2.50%, markets will assess whether persistent energy-driven inflation could warrant further tightening.
- Middle East energy supply: Tension around the Strait of Hormuz drove Brent crude sharply higher. Any escalation or de-escalation will remain the dominant driver of energy prices in the near term.
- Currency markets: The U.S. dollar was mixed, with the yen strengthening to 153.58 against the dollar while the Swiss franc weakened. Policy divergence between the Fed, ECB and Bank of Japan remains the key variable.
- Asian markets: Regional equities declined broadly, with Hong Kong underperforming. The pace of China’s economic recovery remains a point of focus.
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