Last updated: September 18, 2026, 6:00 AM ET
Central Banks & Rates
The Federal Reserve raised rates for the first time since July 2023, a move that came less than two weeks before the midterm elections. The decision was a unanimous vote, leaving President Trump isolated in his demands for cuts. Treasury Secretary Kevin Warsh escaped the president's public ire even as Trump blasted the rest of the central bank and kept up his push for lower borrowing costs. The president had threatened to halt trade if policymakers moved ahead with the hike. For a full breakdown of what the decision means, the Fed's rate path remains the key question for markets. First FT's newsletter led with the headline that Warsh defied the president, while also noting OpenAI's disclosure of a string of incidents involving its AI models.
The Bank of Japan lifted its benchmark rate to 1.25%, its highest level in 31 years. The move followed an unusual pressure campaign by U.S. Treasury officials. A split vote with two dissents sent a bearish signal on the yen, according to strategists. The yen extended its decline against the dollar following the decision, while the FT reported the BOJ raised rates to a 31-year high citing inflation risks.
The Bank of England held rates steady but warned of higher inflation, just a day after data showed the fastest pace of price increases in years. The FT noted the BoE hinted at tightening ahead while announcing a multiyear plan to fully unwind its asset purchase facility. That plan brings finality to quantitative tightening, with the central bank set to unwind its balance sheet through 2034. The FT's markets team framed it as the QT endgame at Threadneedle Street. In a lighter take, the FT observed that the BoE followed FTAV advice, though it cautioned that correlation does not equal causation.
In Australia, Reserve Bank Governor Michele Bullock said the central bank must judge whether its benchmark rate is high enough to cool prices. The RBA held rates as businesses began to question whether inflation would return under 3%.
Equities & Market Moves
U.S. stocks rallied sharply, with the S&P 500 and Nasdaq posting their biggest one-day gains in six weeks. Investors came back to AI stocks, snapping the market out of its inflation gloom. A separate session saw stocks gain as markets retraced post-Fed moves, helped by falling oil prices. Stocks also shook off the Fed's rate hike, with chip shares soaring on Intel comments and the SEC clearing a path for tokenized trading. U.S. equities rebounded from the Fed decision day slump as oil fell for a second consecutive session. In a broad markets wrap, technology stocks drove equity gains in both the U.S. and Asia. U.S. stocks recouped losses on hopes that rising inflation and oil prices are now contained.
Citadel Securities' Scott Rubner said he is increasingly constructive on U.S. stocks. Strategists have given their most bullish forecast on European stocks in eight years. In London, FTSE 100 futures fell as the recent rally was set to fade. Japanese stocks rose 0.8% in early trade, led by chip-related shares after a fall in crude oil prices. Greek bank stocks are set for another boost after rejoining the Stoxx 600 following a decade-long absence. Vietnam stocks are seeing early foreign inflows ahead of their inclusion in the FTSE index. Defense stocks have fallen out of favor amid risks of a midterm "blue wave." Three new ETFs made their debut, spanning tax avoidance strategies to AI winners.
Fixed Income & Credit
Eurozone government bond yields edged higher but stayed comfortably below recent highs. Treasury yields cooled after the Fed hike as U.S. labor markets showed resilience. High Treasury yields are looking like the new normal amid fiscal concerns, with government borrowing costs climbing worldwide. The WSJ Dollar Index fell 0.10% to 96.07, snapping a three-day winning streak.
Double Line's Jeffrey Gundlach warned of a fiscal crisis in the next U.S. recession. A roughly $3.6 billion Schwab municipal-bond ETF is careening toward its worst outflow on record amid a bond rout. The credit debacle gripping Wall Street centers on Glencore, which has found itself at the center of a controversy involving embattled iron ore trader Radiant World. A senior Glencore executive urged counterparts at Radiant World to "say nothing on email." The FT detailed how Glencore became entangled in a $2bn legal battle with the Singapore-based group.
Rising rates are worsening private equity's bad year, with the Fed's hike expected to wreak havoc on funds already struggling to sell portfolio companies. Private equity is turning to financial engineering to lure insurance billions, using structured financing to fuel secondaries funds. The real risk of private credit in the annuity business comes down to liquidity and ensuring long-term promises to retirees are met. A-CAP insurers face a takeover bid over risky private credit exposure, according to the WSJ's Daily Briefing. Rising rates are also throwing a spanner in investment bankers' valuation spreadsheets, as higher cost of capital theoretically lowers company values.
Commodities & Energy
Oil dropped for a third day as supply concerns eased and traders looked to the next OPEC+ meeting. Crude futures settled lower for a second session as supply fears fueled by the outage of Saudi Arabia's East-West pipeline subsided. Oil was lower in early Asian trade as Middle East supply worries eased. Crude futures posted back-to-back losses amid expectations that Saudi Arabia could soon restore some production. JPMorgan's oil analysts said they are unable to predict the market outlook more than six months into the Iran war.
Gold extended a gain at the end of a volatile week as the Fed's hike and lower oil prices tempered inflation fears. Gold also rose on the oil pullback, with the yellow metal likely supported as easing crude prices reduced inflation concerns. Copper is set for a weekly gain as signs of a rebound in Chinese demand helped prices recover. Iron ore was headed for a weekly gain after recovering from a sharp decline earlier in the week. U.S. natural gas futures ended a choppy session little changed. The WSJ's energy roundup covered insight on oil, Drax, and European gas prices.
Saudi Aramco has been looking to secure thousands of tons of diesel in the Mediterranean after attacks disrupted supply. A fuel-export ban is being discussed as Trump's last option to ease prices, likely targeting diesel. The world is doing too little to stave off the next oil shock as the great fuel crisis deepens. Energy traders are toasting the war boom, with commodities brokers profiting from geopolitical conflict. China has stockpiled oil, and the war with Iran revealed just how much influence the world's biggest oil importer now wields.
Deals, IPOs & Corporate News
Ant International-backed fintech Mynt has received approval for the Philippines' largest-ever IPO. Uzbek logistics firm Centrum has tapped Citi and JPMorgan for a London listing. PSA International is considering selling a minority stake in its Mumbai port container terminal operations. India's Shapoorji Pallonji Group said it was ready to work with Tata Sons as a listing path clears.
Turmoil at Tata deepened as the board reversed the executive chair's exit and backed preparations for a blockbuster IPO. The power struggle at Tata Sons set the stage for a showdown after N. Chandrasekaran's reappointment dealt a setback to Noel Tata. OpenAI's listing delay raises the stakes for SoftBank's $50bn data centre IPO, with the SB Energy offering set to test investor appetite for Masayoshi Son. Revolut is planning a dual listing in New York and London, with its CEO citing greater liquidity and more institutional demand in the U.S. Airtel Money's owners are considering raising less than previously sought ahead of its IPO debut. AI startup Plaud plans to file for a U.S. IPO in 2028 once annual revenue exceeds a set threshold.
Mark Walter and Todd Boehly are selling their stake in Chelsea FC to Clearlake Capital for $1.3 billion. The FTC has requested additional information regarding the Fertitta-Caesars merger, and two board members have resigned. Jana Partners is pushing Cooper Companies to replace its CEO, citing a chronic need for an urgent overhaul. Salesforce targeted fiscal 2030 revenue of over $63 billion. Yeti sees long-term growth driven by new product lines and international expansion, targeting mid-single-digit annual net sales growth. GM is partnering with Lockheed Martin to produce Patriot missile parts as the U.S. faces a critical arms shortage. Lucid is partnering with Bolt to launch 25,000 robotaxis in Europe. China's BYD plans to establish four plants in Europe over the long term.
UK & European Economy
British retail sales rose 0.5% in August as hot weather boosted spending, suggesting consumers remained resilient despite mounting pressure on household budgets. U.K. retail sales climbed despite a pickup in inflation, supported by online sales. UK lenders are raising mortgage rates as inflation fears intensify. The UK is losing £1.3mn a day on nationalised steelworks, with MPs hitting out at the lack of a plan for British Steel.
Thames Water should be temporarily placed under public ownership, MPs warned, calling the move "cost neutral" for the Treasury while protecting 16mn customers. UK lawmakers also said Thames Water's senior creditors should be blocked from taking control. European carmakers warned that EU-UK tariffs could be "catastrophic," arguing stricter rules of origin should be delayed. Belgium is intensifying budget talks to find around €10 billion in savings by 2029. Germany's Friedrich Merz is fighting for survival ahead of regional elections. Europe can attract more stock trading with fewer, better markets, as a bigger European exchange could better woo U.S. investors. Prime Minister Mark Carney proposed an EU-Canada alliance amid what he called a "ferocious storm" of U.S. tensions.
Asia & Emerging Markets
The yuan climbed to its strongest level in more than four years as China's central bank signaled support ahead of a Trump-Xi meeting. The Singapore dollar was steady against the U.S. dollar amid debasement fears. Citi's Korea trading head said the won's recent weakness may be short-lived as South Korea's chip sector strengthens. Indonesia's new finance minister will retain the policy of keeping $17 billion in state banks. Japan's rising yields are drawing record demand for retail government bonds, offering a new avenue for fiscal funding. India's economy may be enjoying a sugar high from earlier stimulus, JPMorgan's Jahangir Aziz warned, counseling caution on RBI hikes.
Turkey has turned to two big banks to oversee the liquidation of 131 troubled funds. Turkish authorities detained several top finance executives amid fund turmoil. Regulators froze trading to contain a stock market scandal, with 38 people referred to prosecutors. Russia seized control of the local assets of Nestle and French retailer Auchan. Malaysia's pardons board reviewed a bid from jailed former premier Najib Razak for royal intervention. Brazil's government announced an increase to social welfare payments just weeks before a tight election. Venezuela is nearing a deal to move $4 billion in gold reserves from London to New York, which would allow the interim government of Delcy Rodríguez to access funding.
AI, Tech & Regulation
The SEC opened markets to tokenised stock trading, allowing blockchain-based representations of traditional equities to trade around the clock. The WSJ reported that tokenized stocks got the green light to come ashore, with the SEC granting exemptions but attaching conditions. OpenAI disclosed new "concerning" model behavior, launching a system to track and report AI model misconduct. Researchers breached OpenAI using tools from rival Anthropic. Staff at Microsoft and OpenAI worried about the "largest theft of labor" in history, according to newly unsealed court documents. The New York Times sued OpenAI over copyright, with lawyers saying co-founder Greg Brockman was "motivated by the gazillions" he hoped to make. Tech company staff knew their AI tools posed an "existential threat" to publishers. The FT examined the circular financing risk in the AI financial web, totaling $36tn. Huawei's chair urged China's AI labs to accelerate development, contrasting with Silicon Valley calls for slowdown. King Charles warned of AI's dangers ahead of a Burnham-Trump meeting, citing "existential dangers." Steve Bannon and Bernie Sanders condemned tech oligarchs and demanded AI reforms at a Washington event. The FT asked whether AI has broken the old VC model, as mega-IPOs stretch the feast-or-famine cycle. Medical AI has a proof problem, with advances not yet translating into real-world improvements. The FT argued that going faster will only slow AI down without stronger safeguards.
Geopolitics & Policy
Iran's isolation grew after the U.S. imposed sweeping sanctions on airlines, with Mahan Air halting flights to Turkey and Oman. A leading Iranian airline cut flights as U.S. sanctions hit. Iran has switched from ships to trucks to evade the U.S. naval blockade, deepening its trade reliance on land neighbors. Iran is struggling to shift trade from sea to land as costs rise. Russia and China vetoed a U.S. bid to renew U.N. monitoring of Iran's nuclear program. A U.N. report said a U.S. strike on an Iranian school may have been a war crime, with mistakes that killed more than a hundred children going "beyond negligence." The Houthi militia advanced on Marib in Yemen, intensifying the war. A Houthi offensive spiked oil prices and complicated Trump's Iran strategy. The U.S. is probing an Iran link to cyberattacks on energy tankers in the Strait of Gibraltar. China and the Philippines traded accusations after their vessels collided near Palawan. Poland's Prime Minister Donald Tusk said Russia plans to launch "hybrid-style" strikes on NATO allies. Trump may offer Russia business deals before the war ends, with a new sanctions bill meant to pressure Putin. South Korea's President Lee Jae Myung rejected Trump's request to send troops to Iran. The Trump administration approved a $24bn sale of F-35 jets to Saudi Arabia amid Middle East escalation. The administration also moved ahead with F-35 sales despite intelligence concerns that China could acquire technology. The U.S. is reopening its largest port for Mexican live cattle shipments.
US Economy & Data
U.S. housing starts declined unexpectedly in August, dropping 26% as multifamily projects plunged. Canada's producer prices rose 1.3%(https://headlinesbriefing.com/market/wsj-markets/canada-producer-prices-rise-13-in-july-on-energy-cost