Weekly Market Review - 21-09-2026

Sep 21

5 min read

Technology shares led a mixed week for markets, while UK inflation edged higher and oil prices eased. This week’s review explores the latest market moves, political developments in Germany and Greenland, and questions over the ECB’s future leadership, alongside progress on corporate climate commitments and the economic releases to watch.

Market Recap.

UK and US equities delivered mixed returns, with technology shares leading the gains. The Nasdaq 100 ETF rose 1.90%, while the S&P 500 ETF gained 0.96%. Both recovered from an early dip, with their strongest gains coming later in the week.

The FTSE 100 ETF also rallied before giving back its gains in the final session, ending 0.45% lower. The Dow Jones Industrial Average ETF fell 0.64%, remaining below its starting level throughout the period. The contrasting performances highlighted a stronger week for US technology shares than for the broader Dow or UK market.

News.

Prime Minister Andy Burnham has welcomed a proposed agreement between Denmark and the United States on Greenland’s security, ahead of an expected first meeting with President Trump at the UN General Assembly.

Denmark and Greenland said the agreement would strengthen Arctic and North Atlantic security while respecting sovereignty and Greenlanders’ right to self-determination. Trump described it as giving the US permanent security control, although the text has not been published. The agreement is expected to be signed at the gathering in New York before undergoing parliamentary procedures. It follows months of tensions over Trump’s ambitions for the strategically important territory.

Inflation.

UK inflation rose for a second consecutive month in August, with annual consumer-price growth reaching 3.10%, up from 2.90% in July. Higher transport costs, particularly motor fuels, were the main driver. Prices increased by 0.50% over the month, compared with 0.30% in August last year.

Underlying price pressures were more stable. Core inflation, which excludes energy, food, alcohol and tobacco, remained at 2.60%, while services inflation held at 3.40%. The figures show that fuel costs are pushing headline inflation higher, without a corresponding rise in these broader measures of underlying inflation.

Central Banks.

European Central Bank President Christine Lagarde has left open the possibility of stepping down before her term ends in October 2027. Speaking to Irish broadcaster RTÉ, she said she would leave in 2027 but replied “we’ll see” when asked whether she would remain until October.

Lagarde said any leadership transition would be handled professionally, without confirming an early departure. Reuters also reported that France would support Dutchman Klaas Knot as her successor as part of an arrangement that would see a French candidate take the ECB’s chief economist role. Neither appointment has been confirmed.

Commodities.

Oil prices eased as expectations of restored Saudi pipeline flows and renewed diplomatic efforts reduced some concerns over Middle East supplies. However, continued disruption and threats to energy infrastructure kept markets sensitive to developments in the region. Compared with last week’s quoted figures, US WTI crude fell 2.54% to $98.13 per barrel, while Brent declined 3.34% to $101.84.

Precious metals held above last week’s quoted levels, although both slipped during Monday’s trading. Gold edged up 0.14% to $4,351.21 per ounce, while silver rose 3.11% to $65.98. Lower oil prices helped ease inflation concerns towards the end of last week, but the Federal Reserve’s interest-rate increase and the prospect of further tightening continued to limit gold’s gains.

ESG.

More than 700 companies across 49 countries and territories have now joined the Climate Pledge, committing to reach net zero carbon emissions by 2040.

The initiative’s latest report records 107 new members in 2025, with participating businesses spanning 62 industries. Signatories commit to regularly measuring and reporting emissions, implementing reduction strategies and addressing remaining emissions through qualifying offsets. The report also highlights 33 joint projects supported by 122 members, covering areas including electric transport, more efficient buildings and lower-carbon concrete. These collaborations aim to help businesses tackle shared challenges and put their climate commitments into practice.

Geopolitics.

German Chancellor Friedrich Merz has vowed to remain in office after heavy setbacks for his Christian Democratic Union in two state elections. Projections showed the CDU falling below the 5% threshold needed to enter parliament in Mecklenburg-Vorpommern, while trailing the left-wing Die Linke in Berlin.

The far-right Alternative for Germany was projected to lead in Mecklenburg-Vorpommern, although other parties’ refusal to cooperate makes its route to government difficult. Merz described the CDU’s performance as a “disaster” but pledged to press ahead with economic, tax and welfare reforms. The results add to pressure on his leadership as the government seeks to deliver its reform programme.

Week Ahead.

United States

September’s preliminary business surveys on Wednesday 23rd will provide an early indication of activity across manufacturing and services as the third quarter draws to a close. Investors will watch the surveys’ measures of prices, employment and new orders for signs of how businesses are responding to higher borrowing costs.

Weekly unemployment claims and August’s new-home sales follow on Thursday 24th. Durable-goods orders and the final University of Michigan consumer-sentiment reading are due on Friday 25th, offering further insight into business demand, household confidence and inflation expectations.

United Kingdom August’s public-sector finance figures are due on Tuesday 22nd, providing an update on government borrowing, tax receipts and debt-interest costs. The release will help assess the pressures on public finances and the scope for future spending and tax decisions.

Attention then turns to September’s preliminary manufacturing and services surveys on Wednesday 23rd. These will provide an early view of business activity towards the end of the third quarter, with particular interest in new orders, hiring and firms’ pricing intentions following last week’s inflation figures and Bank of England decision.

Eurozone

September’s preliminary consumer-confidence reading on Tuesday 22nd will offer an update on households’ assessment of the economy. Business surveys follow on Wednesday 23rd, covering manufacturing and services across the Eurozone, including separate readings for Germany and France.

Germany’s Ifo business-climate survey is due on Thursday 24th, providing further detail on companies’ current conditions and expectations. Together, the releases will help show whether demand is holding up and how energy costs are affecting confidence, employment and pricing decisions across the region.

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.