Weekly Market Review - 14-09-2026

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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.

Market Recap.

UK and US equity markets moved lower, with UK shares suffering the sharper decline. The FTSE 100 ETF fell 1.96%, as a relatively steady start gave way to heavier losses.

In the United States, the Dow Jones Industrial Average ETF dropped 1.54%, while the S&P 500 ETF fell 1.04%. The Nasdaq 100 ETF held up slightly better, declining 0.99%, but still reflected the broader weakness in US equities.

News.

Ryanair reported £3 million in losses following the UK’s air traffic control outage on 8th September, after cancelling 260 flights affecting 48,000 passengers. The disruption continued into Wednesday as airlines worked to reposition aircraft and crews.

Industry body Airlines UK said the incident exposed a gap in aviation regulation, with airlines expected to absorb passenger-support costs even when failures occur outside their control. Transport Secretary Heidi Alexander gave air traffic control provider NATS one week to investigate and announced a separate Civil Aviation Authority review, increasing pressure to improve the resilience of the UK’s aviation infrastructure.

Inflation.

US producer-price inflation accelerated to 5.40% in August, up from 4.80% in July, as higher energy costs increased pressure on businesses. Prices rose 0.40% over the month, compared with 0.10% in July.

Diesel prices jumped 24.1% during August, highlighting the impact of rising fuel costs on transport and shipping. Excluding food and energy, producer prices were 4.60% higher than a year earlier. The figures provide further evidence of persistent inflation pressures ahead of the Federal Reserve’s September policy meeting.

Central Banks.

The European Central Bank has announced a 0.25 percentage-point rise in interest rates, taking its deposit rate to 2.50% from 16th September. Policymakers warned that the Middle East conflict was sustaining inflation pressures, with price growth expected to remain above the Bank’s 2.00% target for an extended period.

The ECB forecasts inflation averaging 3.00% in 2026, easing to 2.50% in 2027 and 2.10% in 2028. It also raised this year’s growth forecast to 0.90%, reflecting greater economic resilience than expected. However, policymakers highlighted continued uncertainty and made no commitment to further rate changes.

Commodities.

Last week, oil prices remained sharply higher than the earlier Monday’s levels, despite easing during early European trading. Continued disruption through the Strait of Hormuz and fresh threats to Red Sea shipping increased concerns over supplies. Compared with the figures quoted on 7th September, US WTI crude rose 9.41% to $100.69 per barrel, while Brent gained 8.97% to $105.36.

Precious metals were lower than Monday’s figures as rising bond yields and expectations of a Federal Reserve interest-rate increase weighed on assets that pay no income. Higher US producer-price inflation added to concerns about persistent price pressures, with investors awaiting Friday’s consumer-price figures. Gold fell 1.30% to $4,344.93 per ounce, while silver declined 2.90% to $63.99.

ESG.

New guidance from the Advisers’ Sustainability Group encourages financial advisers to discuss sustainability preferences with every client as part of routine fact-finding.

Released this week, Sustainability in Practice: Guidance for Advisers and Trainers aims to make sustainability a mainstream part of financial advice, extending beyond clients who identify as ethical investors. It also highlights that material sustainability risks should be considered as financial risks that could affect clients’ long-term plans. Available through PIMFA, the industry guidance supports firms in incorporating sustainability into their advice processes and client conversations.

Geopolitics.

Canada introduced retaliatory tariffs on US goods on 8th September after trade negotiations broke down in August. The measures cover US$20 billion of imports, with duties ranging from 15% to 50% on products including steel, furniture, clothing and electronics.

The escalation adds to uncertainty over investment and growth, alongside questions about the future of the US–Mexico–Canada trade agreement. Almost 68% of Canadian exports have gone to the US this year, highlighting the country’s exposure to the dispute. Industry representatives warned of further retaliation, while Reuters reported that no talks were taking place between government officials.

Week Ahead.

United States

The Federal Reserve’s interest-rate decision on Wednesday 16th will dominate the US calendar, following its two-day policy meeting. Updated economic projections and the accompanying press conference will provide further insight into policymakers’ assessment of inflation, growth and the outlook for borrowing costs.

August’s retail-sales figures are also due on Wednesday 16th, providing an update on consumer spending. Housing starts and building permits follow on Thursday 17th, before industrial-production figures on Friday 18th. Together, the releases will help show how household demand, construction and manufacturing are performing towards the end of the third quarter.

United Kingdom A busy UK calendar begins with labour-market figures on Tuesday 15th, covering employment, unemployment, vacancies and wage growth. August’s consumer-price inflation data follow on Wednesday 16th, providing a final update on price pressures before the Bank of England’s interest-rate decision on Thursday 17th.

The Bank’s voting split and accompanying commentary will be closely watched for indications of the next move in borrowing costs. August’s retail-sales figures round off the week on Friday 18th, offering further evidence of how households are managing spending amid pressure on their budgets.

Eurozone

Attention will turn to economic confidence and inflation. The ZEW economic-sentiment survey on Tuesday 15th will provide an update on financial experts’ expectations for Germany and the wider Eurozone.

Final August inflation figures follow on Thursday 17th, confirming or revising the preliminary estimate and providing more detail on the drivers of price growth. The breakdown between energy, goods and services will help investors assess whether inflation pressures are becoming more widespread, with implications for expectations about the European Central Bank’s next policy decisions.

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.