Weekly Market Insights – 28 September
Economic activity remained resilient, with US and euro-area PMIs strengthening and services driving growth, although rising input costs and elevated inflation expectations continued to reinforce concerns over future monetary policy. The UK showed signs of slower expansion, while Japan benefited from stronger manufacturing and exports. In China, monetary policy remained unchanged as President Xi and President Trump extended their trade truce, while geopolitical tensions persisted in the Middle East and Ukraine-Russia conflict.
Risk assets advanced despite a sharp rise in sovereign bond yields, with US technology stocks leading equity gains and emerging markets outperforming developed markets. Government yields reached multi-decade highs across major markets, widening credit spreads and weighing on corporate bonds. Oil prices were mixed amid developments around the Strait of Hormuz, precious metals declined as real yields rose, while the US dollar strengthened and cryptocurrencies posted further gains.
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