Weekly Market Review - 07-09-2026

6 days ago

5 min read

Global markets were subdued this week, but rising oil prices and renewed inflation concerns gave investors plenty to consider. We look at the pressures facing Jaguar Land Rover, the expected ECB interest-rate increase, the UK’s backing for tropical-forest protection and the latest diplomatic efforts to end the war in Ukraine.

Market Recap.

Global equity markets were broadly flat over the week, with the UK edging higher while US shares recorded modest losses. The FTSE 100 ETF rose 0.06%.

In the United States, the Dow Jones Industrial Average ETF fell 0.36%, while the S&P 500 ETF declined 0.26%. Technology stocks also moved slightly lower, with the Nasdaq 100 ETF falling 0.38%. Overall, the relatively small movements reflected a subdued week for global markets.

News.

Jaguar Land Rover has announced plans to cut around 4,000 jobs globally over the next two years as part of efforts to save £1.7 billion. Most of the reductions are expected to affect salaried and management roles in the UK rather than production-line workers.

Britain’s largest car manufacturer said it was responding to significant pressure from US tariffs, growing competition from lower-cost Chinese electric vehicles and the continuing financial effects of last year’s cyberattack. JLR’s quarterly revenue fell 9.6% year on year to £6 billion as vehicle sales declined. Business Secretary Jonathan Reynolds has ruled out a government bailout but is expected to meet the company’s management this week.

Inflation.

Eurozone inflation is estimated to have risen to 3.30% in August, up from 2.90% in July and moving further above the European Central Bank’s 2.00% target. Consumer prices increased by an estimated 0.40% during the month.

Energy remained the main source of inflation, with prices rising 14.30% annually compared with 10.30% in July. However, underlying pressures were more subdued: core inflation eased from 2.50% to 2.40%, while services inflation fell from 3.30% to 3.00%. The mixed figures suggest that higher energy costs are lifting the headline rate without yet causing a broader acceleration across the economy. They will be closely considered when the ECB announces its latest interest-rate decision on Thursday.

Central Banks.

The European Central Bank is widely expected to raise its deposit rate by 0.25 percentage points to 2.50% when policymakers meet on Thursday 10th September. Financial markets have almost fully priced in the move, which economists have described as an “insurance” increase intended to prevent the recent rise in headline inflation from becoming embedded.

However, policymakers are not expected to commit to a sustained series of increases. Services inflation has eased, wage growth is slowing and higher government-bond yields are already tightening financial conditions across the Eurozone. Attention will therefore focus on the ECB’s updated economic forecasts and whether President Christine Lagarde signals that another increase could follow later in the year.

Commodities.

As of 7th September, oil prices had risen sharply amid several supply pressures. Disruption to shipping through the Strait of Hormuz remained significant, while Ukrainian attacks on Russian refineries and operational pressures at US refineries added to concerns about fuel availability. OPEC+ also agreed to keep production unchanged for October, ending six consecutive months of output increases. Compared with last week’s figures, US WTI crude rose 5.66% to $92.03 per barrel, while Brent climbed 5.42% to $96.69.

Precious metals were also higher than the previous week’s figures, although prices eased during Monday’s trading. Stronger-than-expected US employment figures increased expectations that the Federal Reserve could raise interest rates, placing pressure on non-yielding assets. Gold gained 0.64% to $4,402.20 per ounce, while silver rose 1.81% to $65.90.

ESG.

The UK Government plans to provide a £400 million loan to the Tropical Forests Forever Facility, a Brazil-led fund designed to finance the long-term protection of tropical forests around the world.

The facility combines public investment with private-market borrowing and aims to mobilise around $4 billion annually. Participating countries will receive payments based on the area of tropical forest they successfully conserve, with protection verified using satellite imagery. The UK funding is structured as a loan rather than a grant, with investment returns intended to repay contributors while rewarding forest countries for preventing deforestation. The commitment remains subject to final due diligence covering the fund’s size, structure and lending terms.

Geopolitics.

US envoys Steve Witkoff and Jared Kushner have left Kyiv without securing a breakthrough in efforts to end Russia’s war in Ukraine. Their visit followed talks with Russian President Vladimir Putin in Moscow before meetings with Ukrainian President Volodymyr Zelenskyy and European security advisers in Kyiv.

Ukraine said it was ready to participate in further trilateral negotiations, while discussions also covered security guarantees, air-defence supplies and support for the country’s energy infrastructure ahead of winter. However, Russia and Ukraine remain divided over the future of the Donbas region. The diplomatic push comes as both countries intensify long-range attacks, including Ukrainian strikes against Russian oil refineries and continued Russian missile and drone attacks on Ukrainian cities.

Week Ahead.

United States

Inflation will be the main focus in the United States during a shortened trading week, with US markets closed on Monday 7th for Labor Day. The NFIB Small Business Optimism Index and consumer-credit figures follow on Tuesday 8th.

August’s Producer Price Index and weekly Initial Jobless Claims are released on Thursday 10th. The Consumer Price Index and real-earnings data follow on Friday 11th, alongside the University of Michigan’s preliminary consumer-sentiment survey. The inflation figures will be closely watched ahead of the Federal Reserve’s meeting on 15th–16th September, although policymakers have now entered their pre-meeting quiet period.

United Kingdom The UK economic calendar is relatively quiet until Friday 11th, when a broad set of figures will provide an important update on the strength of the economy.

July’s monthly GDP estimate will be released alongside data covering services, industrial production, construction output and international trade. The figures will show whether the economy maintained momentum at the beginning of the third quarter and could influence expectations for interest rates as businesses and households continue to face elevated borrowing and energy costs.

Eurozone

The week began with revised second-quarter GDP and employment figures, which provided further evidence of the Eurozone’s recent economic performance. Attention will then turn to the ECB’s interest-rate decision on Thursday 10th. The Bank will also publish updated economic projections, followed by President Christine Lagarde’s press conference. With Eurozone inflation rising and energy costs remaining elevated, markets will be watching closely for any change in rates and guidance on the path of monetary policy.

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.