Sep 7, 2026 · 4 min · 3 segments
The markets have maintained a cautious approach, influenced by geopolitical tensions in the Middle East, the resilience of US macroeconomic data and rising political uncertainty in Germany following…
Stefano CucchiHost
This week the market attention has been focused on the development in the Middle East, as the tension resurfaced a little bit between the United States and Iran around the Strait of Hormuz, as well as the key US economic data release.
On top of this, the election results in Germany, with the strong winning of the AfD, put some pressure on the central government.
The combination of a still fragile geopolitical backdrop and economic indicators that confirmed the resilience of the US economy, together with the risk of renewed inflationary pressure steaming from the energy market, kept investors in generally cautious mood.
Global equity markets ended the week largely unchanged in the US and the emerging market area, while marginals slowed down in the European area due to the new inflationary pressure.
The gold-based bond market also posted limited moves, remaining slightly above the levels seen in the previous week.
The resiliency of the US economy and the renewed upward pressure on energy prices linked to the geopolitical uncertainty in the Middle East continue to support the elevated sovereign bond policy yields.
As markets look for clear guidance from the central banks regarding their next monetary decisions.
The inflation concerns were reinforced by data from the Eurozone, where an annual inflation increased from 2.9 to 3.3%, in line with market expectations.
In the commodity market, the oil prices moved moderately higher, with the VDI crude returning to US$90 per barrel following the renewed tension in the Gulf area.
Overall, however, oil prices remain relatively stable, suggesting that the market continues to anticipate a gradual, albeit slow, normalization of the geopolitical environment.
In the foreign exchange market, the US dollar remains broadly stable against the euro, with the exchange rate hovering around the 1.16 area, indicating that investors are not currently pricing in a significant deterioration either in the macroeconomic or geopolitical outlook.
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This week the market attention has been focused on the development in the Middle East, as the tension resurfaced a little bit between the United States and Iran around the Strait of Hormuz, as well as the key US economic data release.
On top of this, the election results in Germany, with the strong winning of the AfD, put some pressure on the central government.
The combination of a still fragile geopolitical backdrop and economic indicators that confirmed the resilience of the US economy, together with the risk of renewed inflationary pressure steaming from the energy market, kept investors in generally cautious mood.
Global equity markets ended the week largely unchanged in the US and the emerging market area, while marginals slowed down in the European area due to the new inflationary pressure.
The gold-based bond market also posted limited moves, remaining slightly above the levels seen in the previous week.
The resiliency of the US economy and the renewed upward pressure on energy prices linked to the geopolitical uncertainty in the Middle East continue to support the elevated sovereign bond policy yields.
As markets look for clear guidance from the central banks regarding their next monetary decisions.
The inflation concerns were reinforced by data from the Eurozone, where an annual inflation increased from 2.9 to 3.3%, in line with market expectations.
In the commodity market, the oil prices moved moderately higher, with the VDI crude returning to US$90 per barrel following the renewed tension in the Gulf area.
Overall, however, oil prices remain relatively stable, suggesting that the market continues to anticipate a gradual, albeit slow, normalization of the geopolitical environment.
In the foreign exchange market, the US dollar remains broadly stable against the euro, with the exchange rate hovering around the 1.16 area, indicating that investors are not currently pricing in a significant deterioration either in the macroeconomic or geopolitical outlook.
