Weekly Market Review - 28-09-2026

Sep 29

4 min read

US technology shares led markets higher last week, while UK equities slipped as energy costs and inflation remained in focus. Record diesel prices added to pressure on households and businesses, while rising US inflation expectations highlighted concerns over the outlook for interest rates. This week, attention turns to US jobs data and Eurozone inflation for further insight into the balance between growth and price pressures.

Market Recap.

US equities finished higher, with technology shares delivering the strongest gains. The Nasdaq 100 ETF rose 1.85%, while the S&P 500 ETF gained 0.85%. Both advanced early in the week, dipped on Thursday and recovered in the final session to finish at their highest levels of the period.

The Dow Jones Industrial Average ETF also recovered on Friday, ending 0.17% higher after a more uneven week. UK shares lagged behind, with the FTSE 100 ETF falling 0.40%. Despite a modest recovery in the final session, it remained below its starting level throughout the week.

News.

UK diesel prices have reached a record high, adding to fuel costs for households and businesses. According to the RAC, the average price rose to 199.18p per litre on Monday, exceeding the previous peak of 199.09p recorded in June 2022.

The increase takes the cost of filling a typical 55-litre diesel car to approximately £109.55. Prices have climbed as conflict in the Middle East disrupts energy supplies, with the national average now approaching £2 per litre. Petrol prices have also risen, although they remain below their 2022 record.

Inflation.

US consumers’ inflation expectations rose in September, according to the University of Michigan’s final monthly survey. Households expected prices to increase by 4.60% over the next year, up from 4.00% in August and the highest reading since June.

Longer-term inflation expectations also edged higher, reaching 3.40% after three consecutive months at 3.30%. Meanwhile, consumer sentiment fell as households became more concerned about high prices and their personal finances. These figures measure expectations rather than actual price increases, but provide an indication of how consumers view the inflation outlook and the pressures influencing their spending decisions.

Central Banks.

Bank of France Governor Emmanuel Moulin has warned that France cannot rely on the European Central Bank to resolve its debt problems. French 10-year borrowing costs reached 4.70%, their highest since 2008, as concerns over government finances and political uncertainty weighed on investors.

Ahead of the government’s 2027 budget, Moulin called for spending savings to bring the deficit down. He said France could still borrow through bond markets, but rising interest payments were putting increasing pressure on public finances. While the ECB has tools to respond to severe market stress, he stressed that France must first take action itself.

Commodities.

Oil prices rose on Monday after President Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, renewing concerns over supply disruption. Compared with last week’s quoted figures, US WTI crude was down 3.75% at $94.45 per barrel, while Brent rose 4.95% to $106.88. Both benchmarks remained sensitive to developments in negotiations and threats to energy infrastructure.

Precious metals fell as elevated energy prices reinforced expectations of further US interest-rate increases. Gold declined 4.43% to $4,158.58 per ounce, while silver dropped 7.43% to $61.08 compared with last week’s quoted levels. Both traded near seven-week lows on Monday as higher interest-rate expectations weighed on demand.

ESG.

New EU rules tackling greenwashing began applying on 27 September, strengthening protection against misleading environmental marketing. The measures restrict generic claims such as “eco-friendly” unless businesses can demonstrate recognised excellent environmental performance relevant to the claim.

The rules also prohibit sustainability labels that lack a certification scheme or backing from a public authority, alongside claims that products are climate-neutral based on carbon offsetting. Consumers should receive clearer information about product durability, repairability and guarantees. The changes aim to make environmental claims more trustworthy and help shoppers compare products on a more reliable basis.

Geopolitics.

The European Union has agreed to extend sanctions on around 3,000 individuals and entities linked to Russia’s war in Ukraine until September 2029. The agreement replaces the usual six-month renewal with a three-year extension, but includes the removal of Russian billionaires Alisher Usmanov and Mikhail Fridman from the sanctions list.

Latvia initially opposed the removals before abstaining, allowing the agreement to proceed and preventing the restrictions from expiring. Ukraine criticised the decision and urged EU countries to impose national sanctions on the two men. The compromise maintains wider restrictions while exposing disagreements among European governments over individual sanctions.

Week Ahead.

United States

Labour-market data will be the main focus this week. August’s Job Openings and Labor Turnover Survey is due on Tuesday 29th, providing an update on vacancies, hiring and staff turnover. September’s ISM Manufacturing PMI follows on Thursday 1st October, offering insight into factory activity, new orders and pricing pressures.

Attention then turns to September’s employment report on Friday 2nd, covering nonfarm payrolls, unemployment and wage growth. The figures will help investors assess the strength of hiring and whether wage pressures could influence the Federal Reserve’s next interest-rate decision.

United Kingdom August’s mortgage approvals and consumer-credit figures are due on Tuesday 29th, offering an update on household borrowing and housing-market activity. Revised GDP figures for the second quarter follow on Wednesday 30th, providing a fuller picture of economic growth between April and June.

September’s final Manufacturing PMI is released on Thursday 1st October. Following last week’s preliminary surveys, the report will provide more detail on factory output, new orders and employment. Its measures of input costs and selling prices will also help assess the pressures facing manufacturers as the final quarter begins.

Eurozone

Inflation and manufacturing activity will be in focus across the Eurozone. September’s final Manufacturing PMI is due on Thursday 1st October, providing a fuller assessment of factory conditions at the end of the third quarter, including demand, employment and production costs.

September’s preliminary inflation estimate is scheduled for Friday 2nd. Investors will watch both the headline figure and underlying measures for signs of whether energy-related price pressures are spreading more widely. Alongside the business surveys, the release will help shape expectations for the European Central Bank’s next policy decision.

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.