News & Views

Global equity markets finished lower, with technology stocks seeing the sharpest losses. This week’s review also covers Budget 2026, rising US inflation, falling commodity prices, the ECB’s latest interest-rate decision and new investment in the UK electricity network.

This week, equity markets moved lower overall, with technology stocks seeing the sharpest falls. UK inflation rose to 3.50%, while oil prices remained elevated and attention turned to a busy week ahead, with the UK Budget and interest-rate decisions from both the Federal Reserve and European Central Bank.

Explore September 2026 market performance as AI boosts technology stocks, inflation drives interest rate rises, and developed and emerging markets diverge.

Rising energy costs kept inflation and interest rates firmly in focus, as the ECB announced a rate increase and US wholesale inflation accelerated. This week’s review also explores the financial fallout from UK flight disruption, escalating US–Canada trade tensions and new sustainability guidance for advisers. Looking ahead, decisions from the Federal Reserve and Bank of England take centre stage alongside key economic data.

Markets delivered a mixed week, with technology shares edging higher while UK and US blue-chip stocks lost ground. Investors balanced softer US inflation against renewed oil-price pressure, extreme weather risks and increasingly difficult choices for central banks. This week’s review also examines Lloyds’ £100 billion sustainable finance target and the geopolitical tensions reshaping global alliances.

July saw market leadership broaden beyond technology, with UK equities, commodity-linked markets and selected emerging markets delivering strong returns. However, renewed energy-driven inflation pressures kept central banks cautious, while a sharp correction in semiconductor and AI-related stocks weighed on technology-focused markets. Against this mixed backdrop, the Balanced portfolio benchmark returned -0.45% during the month.

UK equities led a broadly positive week for markets, although technology stocks remained under pressure. Extreme heat and wildfires dominated headlines across Europe, while volatile oil prices kept inflation risks in focus. Attention now turns to key interest-rate decisions from the Federal Reserve and Bank of England, alongside fresh eurozone growth and inflation data.

Markets moved cautiously this week, with UK equities outperforming while US indices softened as investors weighed easing energy concerns against renewed inflation pressure. A proposed US-Iran peace deal helped drive oil prices lower, but central banks remain cautious as higher energy costs continue to feed through into inflation. Meanwhile, ESG developments focused on the expanding reach of carbon regulation, with potential implications for UK exporters and supply chains.

This week’s market review reflects a mixed but eventful backdrop for investors, with US technology stocks continuing to lead equity gains while UK markets remained under modest pressure. Inflation, energy prices and geopolitical tensions stayed firmly in focus, influencing commodity markets, central bank expectations and wider economic sentiment.

This week’s market update saw US equities continue to strengthen despite ongoing geopolitical uncertainty and rising inflation pressures linked to higher energy costs. Commodity markets remained volatile as oil prices surged on renewed concerns surrounding the Strait of Hormuz, while central banks maintained a cautious tone on inflation and interest rates. Political developments in the UK and wider geopolitical tensions also remained firmly in focus throughout the week.