09/09/2026
Global financial markets are seeing notable structural divergence. Equity markets remain buoyant in tech sectors on AI optimism, while geopolitical tensions have pushed crude oil sharply higher. Meanwhile, exchange rates, inflation expectations and international trade dynamics are shifting, raising overall market uncertainty. This analysis covers key asset performance, driving factors and the outlook.
1. Equities: AI Momentum Boosts Asian Chip Stocks
Global capital continues to favour technology assets amid sustained investor interest in AI trading, keeping semiconductor shares on an upward trend. The Philadelphia Semiconductor Index (SOX) rose 1.3%, setting a positive lead for Asian chip names. South Korea’s KOSPI climbed 1%, supported by gains in Samsung Electronics and SK Hynix. The MSCI Asia Pacific Index advanced 0.4%, with the information technology sector as the main contributor.
2. Commodities: Middle East Conflict Pushes Brent Close to $100
Energy markets face heightened volatility as the seven-month Iran conflict escalates, stoking supply fears. Brent crude rose as much as 1.6% to $99.50 per barrel, hitting its highest level since July. The rally was triggered by a US strike on an Iranian oil tanker near Kharg Island, a critical crude export hub. Investors worry about severe disruptions to shipping through the Strait of Hormuz. Iran’s Tasnim News Agency reported the missile attack. Iran’s state TV cited the Islamic Revolutionary Guard Corps warning that all tankers, anchored or docked near Kuwaiti and Bahraini terminals, should abandon ship immediately as they would become targets. Renewed attacks on energy infrastructure may keep oil prices elevated and complicate inflation and interest-rate outlooks. Markets are closely watching whether the flare-up further disrupts supply.
3. FX Markets: Yen Strengthens for Third Straight Session; US Dollar Index Edges Down
The yen extended gains for a third trading day. US Treasury Secretary Scott Bessent said he has “a good sense” of how the Bank of Japan will manage the yen. USD/JPY fell 0.4% to 153.31. The US Dollar Index dipped 0.1%.
4. Inflation & Fed Policy: US CPI the Next Critical Indicator
After a stronger-than-expected US jobs report last week, investors are turning to Friday’s US Consumer Price Index release for clues on the Federal Reserve’s policy ahead of its September 15–16 meeting. Economists forecast headline CPI to rise 0.4% in August, an acceleration partly due to higher gasoline prices. The median estimate in a Bloomberg survey puts core CPI, which strips out volatile food and energy, at a mild 0.2% month-on-month. Annual core inflation is expected to cool to 2.4%, the smallest year-over-year increase since 2021. The split between firmer headline inflation and softer core inflation creates a policy dilemma for the Fed. Rising oil prices may slow inflation’s descent.
5. Trade Developments: US Restricts Some Canadian Imports; EU and Canada Deepen Partnership
The US has moved to ban imports of selected Canadian alcoholic beverages, dairy products and motorcycles. Separately, the EU and Canada are seeking a broader partnership covering trade and security to counter US and Chinese global influence.
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