From tariffs and trade disputes to rising interest rates and stubborn inflation, this month’s update explains the key economic forces shaping markets and what they could mean for your clients’ portfolios in the months ahead
October 6, 2026
Introduction
Global equity markets moved slightly lower in September as concerns about inflation amid ongoing tensions in the Middle East weighed on sentiment. Global government bond yields rose sharply on inflation and government deficit concerns. Several U.S. yields across the curve reached multi-year highs, with the 30-year U.S. Treasury bond yield reaching its highest level since 2002.
The U.S. Federal Reserve Board (Fed), European Central Bank (ECB) and Bank of Japan all raised interest rates in September, while the Bank of Canada and Bank of England held steady. Energy prices remained affected by slow traffic through the Strait of Hormuz. There have been reports of more oil moving through the waterway, but the U.S. and Iran have been unable to reach an agreement to fully reopen it.
In Canada, the S&P/TSX Composite Index declined, dragged down by the communication services sector. U.S. equities posted a small loss over the month. Yields on 10-year government bonds in Canada and the U.S. increased. The price of oil increased, while the price of gold finished lower.
