Here’s a summary of the key points from the live blog:
UK 10-Year Gilt Yield
- Current Status: The yield on the UK’s 10-year gilt has risen to 5.223%, the highest since June 2008, driven by concerns about inflation stemming from rising oil prices.
- Global Context: A worldwide bond sell-off is occurring, with yields generally rising. Japan’s 10-year government bond yield hit 3%, the highest since 1996, while Germany’s reached a 15-year high of 3.34%.
- Inflation Data: In Germany, inflation rose to 2.9% in August, largely influenced by a 10.5% increase in energy costs, although core inflation remained stable at 2.4%.
Oil Prices & Middle East Tensions
- Current Prices: Brent crude is up 0.8% to $91.23 a barrel following recent escalations in the Middle East.
- Shipping Data: Only five vessels transited the Strait of Hormuz recently, which is below the 10-day average, indicating significant disruptions.
- Recent Attacks: Reports of projectiles striking a tanker amid tensions, although there were no casualties or environmental impacts.
Shein’s Stock Market Debut
- Initial Performance: Shein’s shares fell by 10% during its debut, closing at HK$46.62, 4% below the offering price.
- Challenges: Regulatory changes in multiple regions are threatening Shein’s business model, particularly concerning import duties. The company reported a $99 million loss in early 2026 compared to a profit of $395 million the previous year.
Market Outlook
- Bond Markets: Expectations of interest rate hikes are rising globally, with potential increases in New Zealand and Europe.
- Stock Markets: Anticipation of a lower open in European markets and mixed Asian market performances were noted.
Upcoming Data Releases
- Expecting key reports on manufacturing PMI and mortgage approvals throughout the day.
