Investment Daily: Global stocks fell on renewed AI concerns and ongoing geopolitical risks

15 September 2026

US stocks fell on Monday amid elevated oil prices and higher bond yields, while AI-linked stocks slid after major AI company executives warned about risks from rapid AI development. The S&P 500 lost 0.5%.

US Treasuries fell and the yield curve flattened modestly as elevated oil prices reinforced Fed tightening expectations. 10-year yields closed 2bp higher at 4.99%.  

European stock markets mostly fell, driven by geopolitical uncertainty and AI wobbles. The Euro Stoxx 50 fell 1.0%. The German DAX lost 0.5% and the French CAC was down 0.8%. In the UK, the FTSE 100 rose 0.4%.

European government bonds fell. 10-year German and French bond yields both rose 2bp to 3.52% and 4.47%, respectively. In the UK, 10-year gilt yields climbed 3bp to 5.37%.

Asian stock markets mostly fell on Monday amid higher oil prices and renewed concerns over the pace of AI development. Japan’s Nikkei 225 lost 0.8% and Korea’s Kospi dropped 3.3%. Elsewhere, Hong Kong’s Hang Seng was up 0.5% while China’s Shanghai Composite ended little changed (-0.1%). ASEAN markets traded mixed.

Crude oil prices rose on Monday. WTI for October delivery settled 1.3% higher at USD 101.4 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 China, strong tech-driven exports and high-end manufacturing should underpin growth in industrial production. Retail sales growth likely stayed subdued due to tepid non-tech goods demand and unfavourable base effects.