Weekly Market Review - 01-09-2026

Sep 1

5 min read

US equity markets rebounded over the week, led by technology stocks, while UK shares finished slightly lower. Investors remained focused on renewed energy-driven inflation pressures, rising government bond yields and the prospect of further interest-rate increases. This week’s review also examines record ocean temperatures, Nepal’s flood-recovery challenge and the key economic releases ahead.

Market Recap.

Global equity markets delivered mixed returns over the week, with US shares recovering while the UK market finished slightly lower. The FTSE 100 ETF fell 0.19% as investors remained cautious about interest rates and the economic outlook.

US markets rebounded following the previous week’s losses, supported by lower bond yields earlier in the week and positive AI-related corporate updates. The Dow Jones Industrial Average ETF rose 1.18%, while the S&P 500 ETF gained 1.85%. Technology stocks led the recovery, with the Nasdaq 100 ETF rising 2.27%, although gains moderated after Federal Reserve Chair Kevin Warsh reiterated concerns about inflation and the potential need for higher interest rates.

News.

Prime Minister Andy Burnham was due to make his first statement to MPs since taking office as Parliament returned from the summer recess. The appearance, scheduled for after 3.30pm on Tuesday 1 September, also marks his first speech from the ministerial dispatch box in more than 16 years.

Burnham was expected to outline his government’s priorities, including plans to bring more essential services under public control, while promoting a problem-solving approach to government. However, he will face scrutiny from opposition MPs over his recent policy announcements. Justice Secretary Alex Norris was also due to update Parliament on changes to the prisoner early-release scheme and plans to increase prison capacity.

Inflation.

Renewed fighting involving the US and Iran pushed oil prices higher and revived concerns that energy costs could feed into wider inflation. Brent crude climbed above $91 per barrel, while European gas prices reached their highest level in three and a half years.

Government bond yields rose sharply as investors anticipated that inflation could remain elevated and central banks may need to raise interest rates or keep them higher for longer. The US 10-year Treasury yield reached 4.78%, its highest since early 2025, while Japan’s equivalent yield reached 3% for the first time since 1996. UK and European borrowing costs also climbed to multiyear highs.

Central Banks.

German inflation increased to 2.90% in August from 2.80% in July, adding to expectations that the European Central Bank will raise interest rates at its September meeting. Although the figure was below the 3.10% forecast, it was Germany’s highest inflation rate since April.

Higher energy costs remained the main driver, while inflation in food and services eased. The ECB’s deposit rate currently stands at 2.25%, following an increase in June and a hold in July. Policymakers are expected to raise rates by a further 0.25 percentage points on 10 September as they monitor whether higher energy costs are spreading into wages and other prices.

Commodities.

As of 1st September, commodity markets remained volatile as renewed fighting between the US and Iran revived concerns about supplies passing through the Strait of Hormuz. Oil prices rose during morning trading, reversing some of the previous decline. Compared with last week’s figures, US WTI crude was broadly unchanged, rising 0.05% to $87.10 per barrel, while Brent fell 2.83% to $91.72—approximately $92 per barrel.

Precious metals moved sharply lower as higher interest-rate expectations and rising Treasury yields reduced demand for non-yielding assets. Gold fell 5.41% to $4,374.00 per ounce, while silver declined 6.82% to $64.73.

ESG.

The average surface temperature of the world’s oceans outside the polar regions reached a record 21.1°C on 22 August, narrowly exceeding the 21.09°C recorded in March 2024. The estimate measures water around 10 metres below the surface and combines observations from satellites, ships and ocean buoys.

The timing is particularly unusual, as global ocean temperatures normally peak in March or April. A strengthening El Niño is adding heat to decades of human-driven warming, with the oceans absorbing more than 90% of the excess heat trapped by greenhouse-gas emissions. The western English Channel has experienced almost continuous marine-heatwave conditions for more than three years, reaching 7°C above normal in July. Warmer seas contribute to rising sea levels, stronger storms, coastal flooding and damage to marine ecosystems.

Geopolitics.

Nepal may need between $4 billion and $5 billion to rebuild following devastating floods along its northern border with Tibet, equivalent to nearly a tenth of the country’s economy.

The disaster, triggered by a glacier collapse in the Himalayas, swept away towns, roads and bridges and damaged major hydropower stations. More than 600 people were reported dead across Nepal and Tibet, with thousands still unaccounted for. The damage is expected to place significant pressure on an economy reliant on tourism, overseas remittances and hydropower. Nepal is seeking international financial and technical support as rescue efforts begin to shift towards rehabilitation and reconstruction.

Week Ahead.

United States

Labour-market data and business activity will be the main focus in the United States this week. The ISM Manufacturing PMI, construction spending and July’s Job Openings and Labor Turnover Survey are released on Tuesday 1st. The Federal Reserve’s Beige Book follows on Wednesday 2nd, providing an update on economic conditions across its 12 districts.

Thursday 3rd brings international trade figures, revised productivity data, Initial Jobless Claims and the ISM Services PMI. The August employment report follows on Friday 4th, including nonfarm payrolls, unemployment and wage growth. The figures will be closely watched ahead of the Federal Reserve’s September interest-rate decision.

United Kingdom The UK economic calendar is quieter this week, with business activity surveys taking centre stage. August’s Manufacturing PMI, mortgage approvals and consumer-credit figures are released on Tuesday 1st.

Final Services and Composite PMI figures follow on Thursday 3rd, before the Construction PMI on Friday 4th. The surveys will provide an update on activity across the UK economy as businesses continue to face elevated borrowing costs and uncertainty over the outlook for interest rates.

Eurozone

Inflation and business activity will be the main focus across the Eurozone. Tuesday 1st brings preliminary August inflation, July unemployment figures and final Manufacturing PMI data.

Final Services and Composite PMI readings and July’s producer-price figures follow on Thursday 3rd, before retail-sales data on Friday 4th. The releases will help markets assess the strength of the Eurozone economy and whether higher energy costs are creating further inflationary pressure ahead of the European Central Bank’s September meeting.

It is important to note that the geopolitical situation remains highly fluid, and developments are changing rapidly. As such, the outlook may shift quickly as new information emerges.