Investment Daily: US stocks and Treasuries fell as oil prices surged

11 September 2026

US stocks extended losses on Thursday amid higher oil prices and bond yields. The S&P 500 lost 0.6%.

US Treasuries dropped and the yield curve flattened, as renewed energy-driven inflation concerns lifted Fed policy tightening expectations. 2-year yields jumped 16bp to 4.59%, while 10-year yields rose 12bp to 4.96%.

European stocks fell on Thursday amid ongoing geopolitical tensions. The Euro Stoxx 50 fell 0.7%. The German DAX lost 0.8% and the French CAC was down 0.5%. In the UK, the FTSE 100 ended 0.6% lower.

European government bonds fell sharply. 10-year German bund yields rose 6bp to 3.50% and 10-year French bond yields climbed 10bp to 4.44%. In the UK, 10-year gilt yields jumped 11bp to 5.37%.

Asian stock markets traded mostly lower on Thursday, as higher oil prices weighed on market sentiment. Korea’s Kospi fell 0.3%, while Hong Kong’s Hang Seng lost 1.3% and China’s Shanghai Composite was down 0.4%. Bucking the regional trend, Japan’s Nikkei 225 rose 0.2%, as gains in financials and technology/semiconductor stocks offset losses in other sectors. Meanwhile, India’s Sensex ended 0.2% higher.

Crude oil prices surged on Thursday amid Middle East tensions. WTI crude for October delivery jumped 6.7% to settle at USD102.5 a barrel.

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

In the US, headline CPI likely picked up to 0.4% mom in August from a 0.1% rise in July, leaving the annual rate largely stable at 3.4% yoy in August.