Global Markets React to Inflation Rate Decisions and Earnings

Overview

Global markets were shaped by a busy week of inflation data, central bank decisions, economic growth figures, and corporate earnings. Investors focused on policy signals from the Federal Reserve, Bank of England, and Bank of Japan, while fresh CPI data from Canada and the UK provided further insight into inflation trends. Currency markets reacted to these developments, while commodities and major stock indices posted mixed performances. Corporate earnings also drove notable moves in several individual stocks throughout the week.

Major Economic Indicators and Events in Review

Monday, September 14

15:30 – Canada: CPI m/m (CAD)

Canada’s Consumer Price Index (CPI) rose 3.0% year over year in August 2026, unchanged from July. On a monthly basis, the CPI fell 0.1%, while the seasonally adjusted CPI increased 0.2%. Gasoline prices remained high but grew more slowly, while travel tours and rent increased faster. Grocery inflation eased to 2.8%, falling below overall inflation for the first time since July 2024. Clothing prices also declined compared with a year earlier.

USD/CAD rose 0.25% on the day.

Wednesday, September 16

09:00 am – UK: CPI y/y (GBP)

UK inflation picked up in August 2026. The Consumer Prices Index (CPI) rose 3.1% year over year, up from 2.9% in July. On a monthly basis, CPI increased 0.5%. Transport was the main driver of higher inflation, particularly motor fuels, which rose 23.0% from a year earlier. Meanwhile, food and non-alcoholic beverage inflation remained relatively low at 1.3%. Core CPI, which excludes food, energy, alcohol and tobacco, was unchanged at 2.6%, while services inflation also remained steady at 3.4%.

GBP/USD fell 0.75% on the day.

21:00 – USA: Federal Funds Rate (USD)

The Federal Reserve announced changes to implement its September 2026 monetary policy decision. Effective September 17, the Fed raised the interest rate paid on reserve balances to 3.90% and set the federal funds target range at 3.75% to 4.00%. It also raised the primary credit rate by 0.25 percentage point to 4.00%. The Fed will continue using repo operations and Treasury securities transactions to manage liquidity and keep reserves at ample levels.

EUR/USD fell 0.67% on the day.

Thursday, September 17

01:45 am – New Zealand: GDP q/q (NZD)

New Zealand’s economy grew 0.2% in the June 2026 quarter, slowing from 0.9% growth in the previous quarter. GDP was 1.7% higher over the year. GDP per person rose just 0.1%. Growth was supported by construction, public administration, healthcare, and wholesale trade, while transport and retail activity declined. Exports increased 3.3%, but real national disposable income fell 0.4%, showing that household purchasing power remained under pressure.

NZD/USD gained 0.31% on the day.

14:00 – UK: Official Bank Rate (GBP)

The Bank of England kept its main interest rate unchanged at 3.75%, with six policymakers voting to hold and three preferring a rise to 4.00%. Inflation reached 3.1% in August and is expected to rise further as higher energy prices linked to the Middle East conflict increase costs. The Bank said inflation risks remain tilted upward. It also plans to gradually reduce its government bond holdings, with the process expected to continue through 2034.

GBP/USD declined 0.12% on the day.

Friday, September 18

Tentative – Japan: BOJ Policy Rate (JPY)

The Bank of Japan raised its policy interest rate to around 1.25%, effective September 24, as inflation pressures continued to build. The decision passed by a 7–2 vote. The Bank said Japan’s economy is still growing moderately, while higher oil prices, a weaker yen, stronger AI-related demand, and rising wages are pushing up prices. With underlying inflation approaching its 2% target, the Bank signaled that further rate increases may follow if economic and inflation trends continue.

USD/JPY rose 0.58% on the day.

Commodities

1. Crude Oil

1. Crude oil prices declined 4.52% over the past week

2. Brent Oil

1. Brent was down 0.91%% compared to the previous week

3. Gold

1. The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.67% weekly gain

4. Silver

1. XAGUSD increased by 2.72% from last week

Stock Market

1. S&P 500 gained 0.02%

2. DJIA was down 1.54%

3. NASDAQ 100 increased by 0.99%

Top Gainers

1. DataMEDS AI, Inc. (MEDS) 317.73%

2. Aethlon Medical, Inc. (AEMD) 312.42%

3. Veea Inc. (VEEA) 185.26%

Top Losers

1. Rich Sparkle Holdings Limited (ANPA) -90.97%

2. Huachen AI Parking Management Technology Holding Co., Ltd (HCAI) -88.46%

3. Digital Currency X Technology Inc. (DCX) -75.46%

Company Earnings (September 14-18)

Monday, September 14: KMTS (Kestra Medical Technologies, Ltd.)

Tuesday, September 15: FPS (Forgent Power Solutions, Inc.)

Wednesday, September 16: LEN (Lennar Corporation)

Kestra Medical Technologies reported a larger-than-expected loss for its first quarter of 2027. The company posted a loss of $0.75 per share, compared with analysts’ estimate of a $0.61 loss, missing expectations by $0.14. Quarterly revenue came in at $30.97 million. Kestra remains unprofitable, with a trailing loss of $2.67 per share, but analysts expect losses to narrow next year to about $2.12 per share.

KMTS shares rose 6.91% over the past week.

Forgent reported record results, with quarterly revenue nearly doubling to $462 million and adjusted EBITDA rising 163% to $113 million. Demand also strengthened, with record bookings of $1.5 billion and a $3 billion backlog covering more than 90% of next year’s revenue guidance. The company expects fiscal 2027 revenue of $2.4–$2.6 billion and plans major capacity expansion. However, near-term margins will be pressured by about $10 million in hiring and expansion costs.

FPS shares surged 23.95% over the past week.

Lennar continues to face a difficult housing market as mortgage rates near 7%, affordability remains strained, and resale competition increases. Despite this, the company delivered 20,840 homes, improved margins, and reduced construction times. Management is prioritizing sales volume and cash generation over short-term profitability while working through higher land costs. Lennar’s balance sheet remains strong, but its fourth-quarter outlook is still sensitive to interest rates, labor availability, and broader housing-market conditions.

LEN shares fell 3.17% during the past week.

Conclusion

Overall, the week highlighted continued uncertainty across global markets as investors reacted to inflation data, interest-rate decisions and shifting economic conditions. Central banks remained focused on controlling inflation, while currency, commodity and equity markets showed mixed performance. Company earnings also produced sharp moves in individual stocks, reflecting differences in growth, profitability and outlook. Looking ahead, markets are likely to remain sensitive to inflation trends, interest-rate expectations, geopolitical developments and upcoming economic data.