Global stocks wobble as oil surge and soaring yields set the stage for ‘central bank week’

Global equities slipped on Monday, September 14, as a renewed surge in oil prices and rising government bond yields dented risk appetite ahead of a pivotal week for central banks. With the U.S. Federal Reserve, the Bank of Japan and others set to meet, investors are focused on whether policy makers will deliver more rate hikes and how long “higher for longer” will last.

Brent crude remained above the psychologically important $100 mark, as tensions around the Strait of Hormuz raised fears of fresh supply disruptions and a second wave of inflation pressure. At the same time, the U.S. 10‑year Treasury yield climbed toward 5%, putting pressure on both equities and bonds and reviving concerns that traditional diversification may offer little relief when inflation risks dominate.

A stronger U.S. dollar added to the stress in emerging‑market assets, weighing on local currencies and stocks. Futures markets now assign a high probability to the Fed delivering its first rate hike in three years at this week’s meeting. For investors, the key will be the updated projections for inflation and the peak policy rate, which could reset valuations across global stocks, bonds and commodities in the weeks ahead.