01/09/2026 – Daily Reports
Market News Briefing — 1 September 2026
- U.S. stocks fell on Monday after the U.S. and Iran exchanged fire for the first time in a month, with the Nasdaq Futures closing 0.5% lower at 29515, though the major averages still finished August higher. Fed Chair Kevin Warsh said the central bank would “have work to do” absent clearer evidence inflation is returning to 2%; markets now price more than a 65% chance of a September hike, up from about 36% before his remarks. Apple is in focus as John Ternus takes over from Tim Cook as CEO on Tuesday, alongside a reported role change for Phil Schiller.
- German DAX futures opened the week lower as domestic inflation accelerated, with the index quoted near 26250 on Tuesday, about 0.2% below the previous close. That follows Friday’s 0.77% advance to a record 26660, led by BMW, Volkswagen and Mercedes-Benz, as traders assessed Warsh’s hawkish Jackson Hole address. The 10-year Bund yield stood around 3.32%.
- The Nikkei futures were quoted near 66350, with the 10-year JGB yield trading above 3% — close to a 30-year high — and USD/JPY around 159.9. Recent data showed unemployment falling to 2.4% in July, a one-year low, while Tokyo inflation accelerated to a five-month high in August. Japanese industrial production unexpectedly grew in July.
- Bullion traded below $4,425 an ounce on Tuesday, near a two-week low, down 0.3% on the day, as higher oil prices and Fed hike expectations weighed. Gold still gained about 10% in August after the U.S. Treasury announced plans to double liquidity-support buybacks of longer-dated bonds.
- Brent futures rose 1.07% to $91.46, a second consecutive session of gains, after U.S. forces struck two Iranian rocket launchers on Larak Island and Tehran attacked targets in the UAE and Jordan. President Trump extended military threats to Kharg Island, Iran’s main oil export terminal. A supertanker caught fire in the Strait of Hormuz after striking two naval mines, while Gulf producers continue exporting through the waterway. Refinery strikes in Russia have further tightened global refining capacity.
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- Global markets remain focused on U.S.-Iran tensions and rising oil prices. Brent crude moved above $91 per barrel, while higher energy prices are increasing inflation concerns and putting pressure on interest-rate expectations. The U.S. 10-year Treasury yield also climbed to around 4.78%, its highest level in roughly 20 months.
- Gold remains under pressure as rising Treasury yields and expectations of a more hawkish Fed offset safe-haven demand. Investors are now closely watching this week’s U.S. employment data for further clues on monetary policy.
- U.S. equities are facing pressure from higher oil prices and bond yields, while technology stocks remain cautious. Asian markets also weakened, with Japan’s Nikkei falling around 1% as geopolitical and inflation concerns increased.
Global Bond Rout Deepens as Japan Yield Hits 3%
- Global bond markets face renewed selling pressure as Middle East tensions fuel concerns over energy-driven inflation.
- Japan’s 10-year government bond yield hits 3% for the first time since 1996, marking a major shift in Japanese bond markets.
- U.S. 10-year Treasury yield rises to around 4.79%, its highest level since January 2025, while the 30-year yield climbs to 5.27%.
- Germany’s 10-year yield reaches 3.35%, its highest since 2011, while France’s 10-year yield climbs to 4.21%, the highest since 2008.
- Brent crude rises above $92 a barrel as renewed U.S.-Iran tensions increase fears that higher energy prices could reignite global inflation.
- Markets are increasingly betting that central banks may need to keep rates higher for longer, or even accelerate rate hikes, if inflationary pressures persist.
- The euro area is also under pressure as inflation rises above 3%, strengthening expectations for another ECB rate hike.
- Heavy bond issuance from major technology companies to finance the AI boom is adding to the supply of debt and putting further pressure on government bond markets.
- Japan’s rising yields could also encourage Japanese investors to keep more money at home instead of investing in overseas bonds, potentially affecting global capital flows.
What’s Next?
- The key question for markets is whether oil can remain above $90. If it does, inflation expectations could continue rising and make it increasingly difficult for central banks to ease monetary policy.
- This environment could remain negative for bonds and rate-sensitive equities, while supporting the dollar and keeping gold resilient.
