Weekly Market Pulse - Week ending September 11, 2026
Market developments
Equities: Global equity markets came under significant pressure this week, with the dominant theme being the surge in oil prices above $100 per barrel driven by escalating Middle East tensions. Europe bore the brunt of the selloff, with the Stoxx 600 falling 1.7% for its worst week in roughly two months, while German stocks faced mounting headwinds from the energy supply shock. In the U.S., the S&P 500 snapped a four-day losing streak on Friday, as oil pulled back from its highs and communication services and technology led a broad-based rally.
Fixed Income: It was a bruising week for global bond markets, with yields surging to multi-year highs as oil-driven inflation fears and firming central bank rate-hike expectations rattled investors across the curve. In Europe, Germany's 10-year yield hit 3.50%, its highest since 2009, after ECB President Lagarde flagged persistent inflation risks, while municipal bond yields in the U.S. jumped to their highest levels since 2011.
Commodities: Energy markets dominated the commodity complex this week, with Brent crude surging above $100 per barrel, a roughly 10% move, fueled by escalating attacks on Gulf shipping and Saudi energy infrastructure, including the shutdown of Saudi Arabia's East-West Pipeline following attacks on Thursday.
Performance (price return)
SECURITY |
PRICE |
WEEK |
1 MONTH |
3 MONTH |
YTD |
Equities ($Local) |
|
|
|
|
|
S&P/TSX Composite |
35,697.49 |
-2.24% |
-2.13% |
2.96% |
12.57% |
S&P 500 |
7,656.98 |
-0.80% |
-0.92% |
3.55% |
11.85% |
NASDAQ |
26,333.04 |
-0.66% |
-0.43% |
2.03% |
13.30% |
DAX |
25,568.56 |
-1.83% |
-3.12% |
5.61% |
4.40% |
NIKKEI 225 |
64,011.34 |
-1.55% |
-4.42% |
-0.32% |
27.16% |
Shanghai Composite |
3,888.11 |
-1.07% |
-1.17% |
-2.48% |
-2.03% |
Fixed Income |
|
|
|
|
|
Canada Aggregate Bond |
238.75 |
-1.12% |
-1.18% |
-2.55% |
-0.91% |
US Aggregate Bond |
2318.08 |
-0.92% |
-0.97% |
-1.77% |
-1.31% |
Europe Aggregate Bond |
242.25 |
-1.11% |
-2.01% |
-2.10% |
-1.84% |
US High Yield Bond |
29.72 |
-0.58% |
-0.37% |
0.39% |
1.97% |
Commodities |
|
|
|
|
|
Oil |
100.45 |
9.81% |
20.73% |
14.53% |
74.94% |
Gold |
4348.2 |
-1.85% |
-0.50% |
3.23% |
0.67% |
Copper |
646.95 |
-1.93% |
-2.48% |
3.10% |
13.86% |
Currencies |
|
|
|
|
|
US Dollar Index |
99.12 |
-0.06% |
-0.71% |
-0.74% |
0.81% |
Bitcoin (CAD) |
107,362.92 |
-2.71% |
21.36% |
20.84% |
-10.51% |
Loonie |
1.3866 |
-0.21% |
0.42% |
0.74% |
-1.02% |
Euro |
0.8625 |
-0.17% |
0.45% |
0.14% |
-1.29% |
Yen |
153.68 |
1.68% |
3.64% |
4.07% |
1.97% |
Source: Bloomberg, as of September 11, 2026
Central Bank Interest Rates
Central Bank |
Current Rate |
December 2026 |
Bank of Canada |
2.25% |
2.67% |
U.S. Federal Reserve |
3.75% |
4.13% |
European Central Bank |
2.50% |
2.80% |
Bank of England |
3.75% |
4.18% |
Bank of Japan |
1.00% |
1.45% |
Source: Bloomberg, as of September 11, 2026
*Expected rates are based on bond futures pricing
Macro developments
Canada – No Major Domestic Data Releases as Global Inflation and Central Bank Signals Dominated
There were no major Canadian economic releases in the reporting period. Market attention instead remained focused on global inflation developments, particularly in the U.S. and Europe and the implications for the Bank of Canada's policy outlook through year-end.
U.S. – Inflation Pressures Remain Uneven as Consumer and Producer Prices Accelerate
Producer prices rose 0.4% month-over-month in August, while headline PPI accelerated to 5.4% year-over-year. Higher energy costs, particularly fuel prices, were the primary driver, although core producer inflation also remained firm, suggesting pipeline price pressures have yet to fully dissipate.
Consumer prices increased 0.4% month-over-month in August, with annual CPI holding at 3.4%. While headline inflation was boosted by higher gasoline prices, core inflation eased to 2.4% year-over-year, indicating underlying price pressures continued to moderate even as energy costs returned as a near-term inflation risk.
International – Eurozone Growth Holds Up as ECB Tightens Further, While Asian Inflation Trends Diverge
The Eurozone economy expanded 0.4% quarter-over-quarter and 1.0% year-over-year in the second quarter, confirming steady but modest growth. Against that backdrop, the European Central Bank raised its policy rates, including the deposit facility rate to 2.50%, signalling ongoing concern about inflation despite subdued economic momentum.
In China, consumer inflation accelerated to 0.8% year-over-year in August while producer prices increased 3.6%, reflecting firmer domestic demand and continued industrial price strength. The combination points to a gradual improvement in price conditions after a prolonged period of subdued inflation.
In Japan, producer prices rose 7.4% year-over-year in August, remaining elevated despite signs of moderation in some global cost pressures. Persistent wholesale inflation suggests Japanese firms continue to face higher input costs, potentially supporting further pass-through to consumer prices over time.
Quick look ahead
DATE |
COUNTRY / REGION |
EVENT |
|
SURVEY |
PRIOR |
14-Sep-26 |
Canada |
CPI NSA MoM |
Aug |
|
0.5 |
14-Sep-26 |
Canada |
CPI YoY |
Aug |
3.00 |
3.0 |
14-Sep-26 |
China |
Retail Sales YoY |
Aug |
0.80 |
0.6 |
14-Sep-26 |
China |
Retail Sales YTD YoY |
Aug |
|
1.2 |
15-Sep-26 |
United Kingdom |
ILO Unemployment Rate 3Mths |
Jul |
5.00 |
4.9 |
16-Sep-26 |
United Kingdom |
CPI MoM |
Aug |
0.50 |
0.3 |
16-Sep-26 |
United Kingdom |
CPI YoY |
Aug |
3.10 |
2.9 |
16-Sep-26 |
United Kingdom |
CPI Core YoY |
Aug |
2.60 |
2.6 |
16-Sep-26 |
United States |
Retail Sales Advance MoM |
Aug |
0.90 |
-0.6 |
16-Sep-26 |
United States |
Retail Sales Ex Auto MoM |
Aug |
0.50 |
-0.3 |
16-Sep-26 |
United States |
Retail Sales Ex Auto and Gas |
Aug |
0.40 |
-0.2 |
16-Sep-26 |
United States |
FOMC Rate Decision (Upper Bound) |
|
3.75 |
3.8 |
16-Sep-26 |
United States |
FOMC Rate Decision (Lower Bound) |
|
3.50 |
3.5 |
17-Sep-26 |
Japan |
Natl CPI YoY |
Aug |
1.95 |
1.9 |
17-Sep-26 |
Japan |
Natl CPI Ex Fresh Food YoY |
Aug |
1.80 |
1.8 |
18-Sep-26 |
Japan |
BOJ Target Rate |
|
1.25 |
1.0 |
18-Sep-26 |
United Kingdom |
Retail Sales Inc Auto Fuel MoM |
Aug |
-0.15 |
-0.5 |
18-Sep-26 |
United Kingdom |
Retail Sales Inc Auto Fuel YoY |
Aug |
1.85 |
1.6 |
18-Sep-26 |
United Kingdom |
Retail Sales Ex Auto Fuel MoM |
Aug |
-0.20 |
-0.9 |
18-Sep-26 |
United Kingdom |
Retail Sales Ex Auto Fuel YoY |
Aug |
1.90 |
2.3 |
The Asset Allocation Team at NEI Investments
Judith Chan, CFA – Vice President, Head of Asset Allocation
Mateo Marks, CFA – Director, Asset Allocation
Adam Ludwick, CFA – Director, Asset Allocation
Anthony Rago, B.A.Sc. – Senior Asset Allocation Analyst