30 days · Market review
30 days: trade hopes do not remove cost pressures
Over 30 days, economic activity and technology revenue remained important supports, but rate increases and energy-supply risks raised costs. Late September brought hopes of trade relief, while slower Chinese profit growth cautioned against treating that hope as an improvement already delivered. The earlier chronology is preserved; new evidence changes the assessment of future earnings, not the historical events themselves.
Period covered: 2026-08-30 – 2026-09-28Information as of 14 min read
Two important developments have emerged since the 25 September edition: the White House published US and Chinese product lists for proposed trade relief on 27 September, and slower August industrial profit growth in China was reported on 28 September. Friday’s US ten-year yield was 5.17%, slightly below Thursday but well above 22 September. Trade hopes therefore do not remove the need to examine costs and demand.
An announced plan, its implementation and a company’s actual earnings remain different things. Higher bond yields do not remove price volatility. More crude in storage does not automatically rebuild finished-fuel inventories, and higher production does not necessarily mean faster profit growth.
30 days
What happened
The 26 August starting backdrop: growth with cautious consumption
This period begins on 30 August. Data released on 26 August establish its starting conditions, rather than being news within the period. The second estimate of US second-quarter gross domestic product, released on 26 August, showed annualised growth of 1.5%. That is about 0.4% above the previous quarter, not 1.5% growth in three months. Private domestic demand grew faster than the headline measure, so a single figure did not describe conditions for every business.
Consumption data also showed that more dollars spent do not necessarily mean more goods bought. July’s Personal Consumption Expenditures Price Index, released on 26 August, showed annual price growth of 3.7%. Real consumption expenditure, which removes the effect of prices, increased by less than 0.1% over the month. This distinction is worth remembering when reading companies’ reports of rising revenue.
The 26 August backdrop and September results: technology demand became profit
Technology results provided the strongest counterweight to cost concerns. On 26 August, chip designer NVIDIA reported quarterly revenue of 96.221 billion US dollars, up 106% year on year. Operating profit under US accounting standards grew even faster, by 124%. These are results for the quarter ended 26 July, although the company calls it the second quarter of fiscal 2027.
Semiconductor and infrastructure software company Broadcom also confirmed revenue growth on 2 September. Its quarterly revenue reached 29.6 billion dollars, up 86% year on year. Two companies do not represent the whole sector, but their results show that some demand for artificial intelligence infrastructure has already turned into sales. How much the customers buying that equipment will earn remains a separate question.
Early September: growth and more expensive energy appeared in the same picture
European statistics did not allow a simple choice between good growth and bad inflation. The preliminary euro-area estimate for August, released on 1 September, showed annual consumer price inflation of 3.3%, compared with 2.9% in July. Energy prices rose 14.3% year on year, while services inflation slowed. Prices were moving unevenly, rather than the entire consumer basket getting more expensive at one uniform pace.
On 7 September, euro-area second-quarter growth was revised to 0.6% quarter on quarter. That was a better estimate of an earlier period, not extra growth that suddenly appeared in September. The US increase of 162,000 jobs in August, announced on 4 September, also showed resilience. June and July gains had been much smaller. Businesses still had customers, but that did not make it easier to promise rapid interest rate cuts.
The oil problem was delivery as well as price
Unreliable supply complicated the energy story. On 5 and 8 September, US Central Command reported strikes on Iranian tankers. These are statements from a party to the conflict, not an independent measurement of all oil flows. Even so, they were a reminder that June’s diplomatic agreement did not yet mean shipping had been reliably restored.
The US Energy Information Administration’s 9 September forecast projected an average Brent price of about 90 US dollars per barrel in the second half of the year. That was an increase of 8 dollars, or roughly a tenth, from the previous forecast of 82 dollars. Model inputs were finalised on 3 September, so this revision cannot be attributed to later military statements. It is a forecast, not today’s exchange price. For hauliers and energy-importing industry, what matters is whether actual improvements in supply bring lower bills.
10 September: Europe chose higher interest rates
The European Central Bank decided to raise all three key interest rates by 0.25 percentage points. The deposit facility rate rose from 2.25% to 2.50% on 16 September. The decision has been made, but its effective date is not its announcement date.
In the bank’s forecasts, the energy shock remains an obstacle to returning inflation to its 2% target. That complicates conditions for companies facing higher fuel and borrowing costs at the same time. Banks’ interest income may rise, but weaker customers increase the risk of loan defaults. A central bank rate increase is therefore not equally good news for the entire financial sector.
11 September: annual inflation did not rise, but the monthly message was not reassuring
The US Consumer Price Index, or CPI, rose 3.4% year on year in August, the same as in July. The monthly change, adjusted for normal seasonal patterns, nevertheless accelerated from 0.1% to 0.4%. These data were already released on 11 September; this is not a future event.
The picture excluding food and energy is also mixed. Annual growth slowed from 2.5% to 2.4%, but monthly growth rose from 0.2% to 0.3%. It is therefore inaccurate to say that all price pressure intensified by the same amount. The central bank will have to consider both the pace in recent months and the broader trend.
How can annual inflation stay unchanged while monthly inflation rises?
The annual change compares the price level with the same month a year earlier. The monthly change compares two adjacent months. A new price increase can replace a similar older month, leaving the annual figure unchanged. The measure excluding food and energy helps show the direction of other prices, but does not capture a household’s whole bill.
? How should we read GDP and price indices?
Gross domestic product measures the value of final goods and services produced in an economy. Real growth removes the effect of prices. US quarterly growth is often reported at an annualised rate, as if the same change continued for four quarters. The Consumer Price Index measures a basket of prices weighted by consumption. Its annual and monthly changes have different comparison bases. The Personal Consumption Expenditures Price Index also includes spending made on consumers’ behalf, uses different weights and accounts for changes in the composition of consumption; these two price indices should not be treated as interchangeable.
11 September: the wait for an energy supply recovery grew longer
The International Energy Agency’s 11 September forecast projected a larger fall in oil supply than in demand this year. This is a forecast, not the final annual result.
France’s example: money is available, but it costs more
France’s ten-year government bond yield benchmark was 4.48% on 14 September, compared with 4.19% on 1 September. The move over these sessions is 0.29 percentage points; it is not a monthly investment return. The higher cost of new debt can increase the budget’s interest expense over time, but coupons on existing fixed-rate debt do not automatically change.
16–24 September: the relief in interest rates did not last
On 16 September the Federal Reserve raised its target range to 3.75–4.00%. An earlier European decision lifting the deposit rate to 2.50% took effect on the same day. The US ten-year yield fell to 4.96% on 21–22 September, but reached 5.18% on 24 September. A few days of easier financing conditions did not become a lasting direction.
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The preliminary US Purchasing Managers’ Index, or PMI, reached 58.4 in the release of 23 September, compared with 56.0 in August. Initial unemployment benefit claims of 197,000 for the week ending 19 September, released on 24 September, reinforced the picture of resilience. These are signals from 23–24 September, but neither a survey nor one week of claims is a final measure of an entire quarter’s growth.
? Purchasing Managers’ Index: what does the threshold mean?
The company survey compares activity with the previous month. Above 50 generally indicates expansion and below 50 contraction. A reading of 58.4 does not mean growth of 58.4%; the preliminary measure may be revised.
September’s decisions extended beyond the US and euro area. On 18 September the Bank of Japan set an overnight interest-rate target of 1.25%, effective from 24 September. On 17 September the Bank of England left Bank Rate at 3.75%. These different paths matter for Japanese bonds and yen-funded investments, as well as British companies’ borrowing costs.
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30 days
What matters now
US–China trade relief moved closer, but tariffs have not yet been cut
The weekend brought businesses more reason to hope for easier trade, but it did not yet reduce their bills. On 27 September the White House published US and Chinese product lists under the “30 for 30” trade initiative. The trade under consideration is worth approximately $30 billion in each direction. This is a concrete negotiating step, not tariff removal already in force or money already paid. On Monday morning, the key question is not simply the size of the initiative, but which goods would qualify, when relief would begin and what conditions would apply.
? “30 for 30”: what does the amount mean?
The $30 billion on each side refers to the scope of its product list. It is neither a 30% tariff nor additional corporate profit of that amount. Exchanging lists and bringing final tariff changes into force are separate stages.
If lower tariffs take effect, an importer could pay less for the same goods. Some of the benefit might remain in profit and some might reach customers through lower prices. Clearer rules could also reduce the need to hold large inventories. That would help industrial suppliers and retailers dependent on bilateral trade; logistics businesses need to see whether an agreement generates actual additional orders.
The opportunity is lower costs in specific supply chains, not a uniform rise in all US and Chinese shares. Exemptions, delayed implementation and conflicting conditions remain risks. An exporter whose products are not included may see no benefit. Final product codes, tariff rates and effective dates will be the next evidence capable of changing the assessment. Until then, a promise should not be counted as profit already earned.
A 5.17% US yield: trade hopes do not guarantee cheaper loans
Trade conditions can improve while borrowing remains expensive. On Friday, 25 September, the US ten-year Treasury yield stood at 5.17%. That was 0.01 percentage points below Thursday, but 0.21 points above the 4.96% recorded on 22 September. The small final-session decline therefore did not undo the earlier rise. These readings describe completed US sessions, not a supposed Monday morning response to Sunday’s negotiations.
? Bond yields: how should 5.17% be read?
A yield relates a bond’s market price to its future payments; this is the US Treasury’s standardised ten-year measure. A move of 0.21 percentage points is 21 basis points, not a 21% investment return. When yields rise, the prices of existing fixed-rate bonds generally fall.
Business demand is not uniformly weak either. Figures released on 25 September showed August US durable-goods orders of $338.6 billion, virtually unchanged from revised July. Orders for non-defence capital goods excluding aircraft, however, rose 1.6%, while shipments increased 0.6%. That is a more favourable signal for equipment suppliers than the flat headline alone suggests. An order is nevertheless not yet a delivery or an earned profit.
? Business-equipment orders: what does the comparison show?
The narrower category excludes defence and aircraft, helping separate some large, irregular orders. Changes compare August with revised July, adjusting for normal seasonality but not for prices. This is not a measure of all business investment: for example, new semiconductor orders are excluded.
Investors therefore face two different tests. Industrial-equipment suppliers need orders that turn into deliveries, while property companies and rapidly expanding technology businesses also depend on the price of new debt. Longer-maturity bonds could benefit if price growth slows and yields decline. But resilient demand and rising input costs could postpone that relief. US spending and price data on 30 September will help test whether sales remain supported without strengthening inflation.
Chinese industrial profit growth slowed: trade promises cannot replace demand
The latest Chinese figures are a reminder that proposed easier trade rules still have to turn into earnings. Data released on 28 September showed that profit at larger industrial enterprises was 4.2% higher than a year earlier in August. July’s annual increase was 11.2%. Profit was therefore still growing, but at a slower pace. These figures do not mean profit fell 7% month on month: the difference between the two annual growth rates is 7.0 percentage points.
? Industrial profit: what does the measure cover?
China’s statistics cover industrial enterprises with annual revenue from principal activities of at least 20 million yuan, with growth calculated on a comparable sample. August’s annual change compares it with August a year earlier, not with July. This is not a measure of every Chinese company or of stock-market returns.
The economic link is straightforward: selling more goods can lift revenue, but lower selling prices or higher costs can absorb part of the benefit. Output alone therefore does not tell us how much money a business keeps. Chinese customers’ profitability matters to European industrial and commodity suppliers because it affects their ability to order equipment and raw materials. Export relief would be more helpful to Chinese manufacturers if genuine end demand also strengthened.
The opportunity would improve if trade relief and recovering orders allowed businesses to protect prices and profit. The opposite is the risk: higher output can come with excess supply and larger discounts. Holdings in equipment suppliers and metals producers therefore depend on more than China’s economic growth targets. The next manufacturing and orders surveys, followed by sales and profit data, will help show whether August’s slower pace was temporary.
More crude in storage does not mean an equally large fuel cushion
Energy risk should not be reduced to a single total for crude oil in storage. The latest US weekly report available this morning was released on 23 September and covers the week ending 18 September. Commercial crude stocks excluding the strategic reserve stood at 426.4 million barrels, around 2% above their five-year seasonal average. Petrol stocks were 6% below their own average and distillates 12% below theirs. These are neither 28 September prices nor a new weekend measurement of inventories.
? Distillates and seasonal averages: what is being compared?
Distillates include diesel and heating-oil products. Each product’s inventory is compared with its own average at the same time of year over five years. A 12% shortfall in stocks is neither an equivalent price rise nor an equivalent shortfall in total demand.
The refining chain explains why these figures can move in different directions. Crude still has to be turned into a specific fuel and delivered to its buyer. If less is processed, crude can build up in storage while finished-product stocks are replenished more slowly. For a haulier, airline or chemical plant, the final fuel bill matters; for a refiner, the gap between crude purchase prices and product selling prices matters.
Rebuilding fuel stocks would help the profitability of transport and energy-intensive industry. Another supply disruption while inventories remain below normal could raise costs and prolong the inflation problem. The next weekly US report needs to be read across refining throughput, petrol and distillate stocks together. More crude alone is not an improvement across the whole supply chain.
Consumer views caution against calling all demand strong
Consumer sentiment provides a counterweight to business orders. The University of Michigan’s final September index, released on 25 September, fell from 51.7 to 48.1. Respondents’ expectations for price growth over the year ahead increased from 4.0% to 4.6%. This is not measured inflation, but households’ assessment. An equipment maker and a retailer dependent on discretionary purchases can therefore receive different signals from the same US economy.
? Consumer sentiment: what does an index of 48.1 mean?
The University of Michigan survey summarises households’ views of their finances and economic prospects. A higher reading means a more favourable assessment; it does not use the Purchasing Managers’ Index threshold of 50 for expansion. Survey inflation expectations are neither actual price statistics nor a central-bank forecast.
The week’s question: will lower trade barriers turn into higher profit?
Monday’s thesis is not that better negotiations make every asset rise. Trade relief could lower some business costs, but expensive debt, slower customer profit growth and fuel bills can offset that benefit. Implementation of relief and stronger orders would support the thesis. Larger discounts and deteriorating earnings would weaken it. Final trade terms and this week’s price and spending data therefore need to be assessed together.
For industrial and retail holdings, the products covered by any agreement matter. For longer-maturity bonds and companies financing expansion with debt, the persistence of high yields matters. For transport and chemicals, fuel supply matters. A business with less debt and more cash reserves may withstand the same cost change more easily. Exchange rates also affect a euro investor’s unhedged dollar investments; this review makes no claim about an unverified currency move.
30 days
What comes next
Three tests to watch next
- Final US–China trade terms. Product codes, tariff rates, exemptions and effective dates matter. Exchanging lists is not the same as cheaper goods already delivered.
- US spending and price data on 30 September. August’s Personal Consumption Expenditures Price Index will test inflation, while real expenditure will show changes in the volume purchased rather than simply the money spent.
- Manufacturing demand and fuel stocks. New business surveys and the next weekly US energy report will show whether orders and supply buffers are improving together. Until publication, these are signals to watch, not reported results.
? Personal Consumption Expenditures Price Index: what does it measure?
The index measures changes in the prices of goods and services consumed, including spending made by others on consumers’ behalf. Its weights adjust with the composition of spending. Real consumption expenditure removes the effect of price changes, so it answers a different question from inflation.
Important. This is general market analysis, not a personal recommendation to buy or sell. Historical data and company results do not guarantee future returns. Forecasts and conditional scenarios may not materialise.
How is the history preserved and updated?
All five periods in this edition share one information date. Week means the latest 7 days, quarter means 90 days, and year means the trailing 12 months. The next dated edition will have a separate URL. This text keeps its date and assessment; later events are not silently inserted into an older edition. Longer periods assess new evidence alongside earlier developments without repeating every headline.
