Investment Daily: US stocks declined as Treasuries fell sharply
24 September 2026
Key takeaways
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US stocks and Treasuries fell.
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European stocks and government bonds fell.
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Asian stocks were mixed.
Markets
US stocks declined on Wednesday amid higher Treasury yields. The S&P 500 lost 0.8%.
US Treasuries fell sharply as upbeat PMI readings reinforced market expectations for additional Fed tightening, while a weak 5-year Treasury debt auction added to the selling pressure. 10-year yields jumped 15bp to 5.11%.
European stocks fell on Wednesday as oil prices rose on renewed geopolitical uncertainty. The Euro Stoxx 50 fell 0.4%. The German DAX lost 0.7% and the French CAC was down 0.4%. In the UK, the FTSE 100 ended flat.
European government bonds sold off. 10-year German bund yields rose 9bp to 3.55% and 10-year French bond yields jumped 16bp to 4.66%. In the UK, 10-year gilt yields climbed 11bp to 5.35%.
Asian stock markets traded mixed on Wednesday. Korea’s Kospi rose 0.9%. Chinese equities fell as tech shares weakened on regulatory concerns with the Shanghai Composite falling 0.4% and Hong Kong’s Hang Seng closing 1.0% lower. India’s Sensex gained 0.4%.
Brent crude oil for November settlement closed 3.9% higher at USD103.1 a barrel, amid ongoing geopolitical uncertainty and with US diesel in focus.
Key Data Releases and Events
Releases yesterday
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.
Releases due today (24 September 2026)
Germany’s IFO business confidence index has risen since the spring, in line with a more upbeat German manufacturing PMI.
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