📊Market Wrap: Oil drives yields higher and gold lower (28.09.2026)

🛢️ Commodities

• The rejection of a peace proposal by Iran triggered a sharp spike in crude prices and heightened severe concerns over global supply disruptions. President Donald Trump rejected the latest truce proposals, pushing Brent crude above the $107 per barrel level.
• Higher bond yields and a strong US dollar are exerting heavy selling pressure on precious metals, pushing gold and silver into clear declines. European mining stocks became the weakest link in the market, with the sector index losing over 2% amidst a global sell-off in precious metals.
• European natural gas is rising, even though German storage facilities are adequately filled and supplies for the upcoming winter season remain secured through diversified import sources.
• As of 12:20 PM, gold is trading near $4,152, down 3.09%, while silver is near $61.22, down 4.68%. Meanwhile, WTI crude is trading near $96.16, up 4.04%, and Brent crude is near $100.79, up 3.47%.

📊 Macroeconomics

• Bank of England official Ramsden noted that inflation risks have shifted to the upside, which could lay the groundwork for a interest rate hike if price pressures continue to build. The Bank plans to begin selling covered bonds starting from the longest maturities (2035–49) as part of a credible and consistent balance sheet reduction strategy.

💱 Currencies

• The dollar index maintains a strong position, driven by rising crude oil prices and a hawkish stance from the Fed, making the American currency the strongest among G10 peers. 
• Meanwhile, the Japanese yen gains after firm warnings from Japan's top currency diplomat, Atsushi Mimura, against excessive currency weakness, driving rates lower.
• Societe Generale points out that market consensus for the main currency pair continues to shift lower amidst persistent strength in the US dollar. The British pound is up marginally, testing the US dollar against incoming domestic macroeconomic data.
• As of 12:20 PM, EURUSD is trading at 1.1366, down 0.13%, while GBPUSD is at 1.3249, up 0.11%, and USDJPY is at 157.12, down 0.08%.

📈 Stocks and Indices

• European stock markets recorded slight gains as investors briefly brushed off rising bond yields. 
• British homebuilders rose strongly after the government announced a new loan program to support first-time home buyers, which JPMorgan analysts called a genuine game-changer for the industry.
• Futures on Wall Street are trading lower in response to a surge in crude oil prices and escalating geopolitical tensions in the Middle East. 
• US indices are under selling pressure, although global equities overall are still performing relatively well on an annualized basis as an effective buffer against price pressure.
• Spółka Nvidia unveiled a new software platform designed to effectively prevent errors and undesirable breaches in advanced AI agents. Additionally, Baird raised its target price for Micron stock, pointing to agentic artificial intelligence as the primary growth driver for the company's future.
• As of 12:20 PM, S&P 500 futures are trading around 7,760, down 0.59%, while Nasdaq 100 futures are near 30,564, down 1.15%, and the DAX is at 25,567, down 0.61%.

Most indices are down on the last Monday of September. Source: XTB

Most sectors are retreating today in Europe, except for Consumer Staples and Communications. Source: XTB

🪙 Cryptocurrencies

• The global digital asset market came under heavy downside pressure, directly tied to the prevailing risk-off mood across traditional equity exchanges. The political situation surrounding Iran and rising energy commodity prices continue to deter investors from allocating capital into riskier asset classes.
• California Governor Gavin Newsom officially signed a new law completely banning public officials from creating their own memecoins. The new regulations also introduce significantly stricter rules regarding the restitution of funds in cases of detected fraud in the crypto market.
• As of 12:20 PM, Bitcoin is trading around $82,611, down 2.33%, while Ethereum is near $2,643, down 1.42%.