The US equities extended their downward trajectory as the spike in energy prices pushed Treasury yields higher and intensified pressure on corporate profitability. By the end of Wednesday’s session, the Dow Jones (US30) fell 0.60%, the S&P 500 (US500) declined 0.58%, and the Nasdaq (US100) closed 1.08% lower. The August Producer Price Index rose 0.4% m/m, driven by higher oil and fuel costs amid escalating conflict involving Iran. The September acceleration in commodity prices, combined with strong demand from Asian buyers, has deepened investor concerns about potential Federal Reserve tightening at the upcoming meeting.
The most significant sell‑offs occurred in the technology sector and among chipmakers, which are highly sensitive to borrowing costs. Intel dropped 5.6%, AMD fell 3.4%, and Nvidia decreased 2.3%. Meta closed 1.4% lower, Palantir 2.2% lower, and Oracle was down 5.4% ahead of its earnings release. A notable exception was Apple, which surged 3.6%, fully recovering its previous decline thanks to the launch of its new device lineup, headlined by the foldable iPhone Duo.
In Europe, Thursday’s session also ended in the red: Germany’s DAX (DE40) fell 0.84%, France’s CAC 40 (FR40) declined 0.46%, Spain’s IBEX 35 (ES35) slipped 0.18%, and the UK’s FTSE 100 (UK100) closed 0.57% lower. The yield on 10‑year German Bunds climbed above 3.45%, reaching its highest level since April 2011. The key trigger for the sell‑off in German sovereign debt was the European Central Bank’s decision to raise interest rates again amid the US-Iran conflict. The ECB warned that inflationary pressures would remain elevated for an extended period: it kept 2026 inflation expectations at 3.0%, while raising projections for 2027 and 2028 to 2.5% and 2.1%, respectively. Eurozone GDP outlook was also improved to 0.9% for 2026 and 1.4% for 2027. The renewed energy shock, driven by geopolitical escalation in the Middle East, is adding further momentum to rate expectations. Brent crude’s surge above $105 per barrel and European gas prices hitting multi‑year highs are fueling fears of long‑term price acceleration. Market anxiety is heightened by reports that US officials expect active hostilities to continue until the end of President Donald Trump’s term in January 2029.
The US natural gas (XNG) prices fell to a three‑week low below $2.78/MMBtu following reports of a substantial increase in national inventories. Current reserves are nearly 5% above the five‑year average, and record September production (112.9 bcm/day) is amplifying oversupply risks. Excess supply is fully offsetting strong demand‑side fundamentals, preventing a deeper market decline.
In Asia, Japan’s Nikkei 225 (JP225) rose 0.20%, China’s FTSE China 50 fell 0.33%, Hong Kong’s Hang Seng (HK50) dropped 1.27%, and Australia’s ASX 200 (AU200) closed 1.03% lower.
The Australian dollar (AUD) settled below $0.72, holding near a more‑than‑one‑week low and ending the week in negative territory. The main pressure factor is broad US dollar strength driven by surging Treasury yields. Against this backdrop, markets sharply increased expectations of a fourth rate hike by the Reserve Bank of Australia this year: probability spreads indicate an 84% chance of a 25 bps hike this month. Market pricing suggests Australia’s key rate could reach 4.85% early next year, marking the highest level since 2008.
The New Zealand dollar (NZD) stabilized near $0.580 after an overnight decline of 0.7%, reaching late‑July lows. The currency is pressured by broad US dollar strength and rising expectations of a Federal Reserve rate hike. Additional negative sentiment stems from signals of a more dovish stance by the Reserve Bank of New Zealand, whose officials have confirmed intentions to maintain a slower tightening pace.
Malaysia’s unemployment rate stood at 3.0% in July 2026, remaining stable for the fourth consecutive month but holding at its highest level since October 2025. The services sector remained the main driver of hiring, with strong activity in finance and insurance, hospitality, and entertainment.
S&P 500 (US500) 7,591.80 -44.56 (-0.58%)
Dow Jones (US30) 52,064.10 -316.56 (-0.60%)
DAX (DE40) 25,361.15 -215.30 (-0.84%)
FTSE 100 (UK100) 10,608.92 -61.14 (-0.57%)
USD Index 99.07 +0.25 (+0.25%)
News feed for: 2026.09.11
Japan Producer Price Index (m/m) at 02:50 (GMT+3) – JPY (MED)
UK GDP (m/m) at 09:00 (GMT+3) – GBP (MED)
UK Industrial Production (m/m) at 09:00 (GMT+3) – GBP (MED)
UK Manufacturing Production (m/m) at 09:00 (GMT+3) – GBP (MED)
UK Trade Balance (m/m) at 09:00 (GMT+3) – GBP (MED)
Switzerland SNB Chairman Schlegel Speaks at 12:15 (GMT+3) – CHF (LOW)
US Consumer Price Index (m/m) at 15:30 (GMT+3) – USD, XAU, US Indices (HIGH)
US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3) – USD (MED)
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