This content was published on
September 11, 2026 - 01:10
5 minutes
(Bloomberg) — Asian stocks and bonds were set for declines after a surge in oil prices sparked a selloff in US markets, while the latest inflation data reinforced bets on an imminent Federal Reserve rate hike.Brent crude climbed above $107 a barrel on Thursday, pushing Treasury yields to multiyear highs and lifting the dollar to a one-week peak. Bonds came under further pressure after the Treasury bought back $5.19 billion of debt, less than investors had anticipated. A hotter-than-expected producer-price report also prompted traders to boost wagers on a Fed hike next week.Asian government bonds followed Treasuries lower in early Friday trading, with Australia’s three-year yield jumping 16 basis points to its highest level since 2011.Equity-index futures for Japan, South Korea and Australia all pointed lower at the open. Contracts for US benchmarks were little changed in early Asian trading after the S&P 500 fell for a fourth straight session, its longest losing streak since June. Oracle Corp. shares gained about 6% in extended trading after reporting better-than-expected growth in its cloud computing business.Friday’s consumer-price report will now be a key test for markets, with investors looking for signs that higher energy costs are spilling into broader price pressures. A softer reading may ease the rise in yields and rate-hike expectations that has weighed on equities, while another upside surprise risks extending the selloff.“Yields and oil probably need to come down in order for stocks to work,” said Stephanie Roth, Wolfe Research’s chief economist. That could happen, for example, if Friday’s inflation data were to “come in quite soft.”Treasury yields rose across maturities Thursday, with the 10-year topping 4.9%, its highest since 2023. The selloff deepened after the US government purchased fewer 10- to 20-year securities than investors had expected in Treasury Secretary Scott Bessent’s first expanded buyback operation.The US producer price index rose 0.4% in August from the previous month, the most since May. Swaps are now pricing about a 70% chance of a Fed hike next week and fully discounting a move by October. European Central Bank President Christine Lagarde added to concerns over tighter global monetary policy, saying the region’s inflation would remain well above target into 2027.“A hot US PPI print and a hawkish-sounding Christine Lagarde both speak to a reality that points to the possibility a global central bank rate-hike cycle may be in the offing, which does not support risk assets today or in the short term,” said Joe Brusuelas, chief economist at RSM US LLP.Oil’s surge has added another complication for central banks as the conflict around the Strait of Hormuz threatens to keep energy prices elevated. An increase in attacks on shipping through the critical waterway has pushed up prices for oil, natural gas and diesel, adding to concerns that energy costs will feed through to inflation.Iran signaled it has no intention of backing down in the face of an American naval blockade and threatened to escalate its strikes if the US continues attacking its territory.“Rising oil prices will be a concern ahead of the midterms,” said Warren Patterson, head of commodities strategy at ING Groep NV. “In order to see prices moving significantly higher, we would need to see recent escalation feeding through to renewed disruptions in oil flows through the Strait of Hormuz.”Corporate Highlights:Microsoft Corp. plans to more than triple its data center capacity, an effort that could help the company overcome a computing shortage that has forced it to turn away some AI and cloud business. Adobe Inc. gave an outlook for sales that narrowly missed analysts’ estimates, failing to dispel concerns about pressure from AI upstarts. Cybersecurity is the next big market for AI, with advances in the technology set to disrupt an industry geared to defending computer systems, said Nvidia Corp. Chief Executive Officer Jensen Huang. Anthropic PBC accused Moonshot AI of covertly routing thousands of user requests to the US firm’s Claude models and passing off the responses as its own in a bid to gain an edge in the AI race. Macy’s Inc.’s guidance left investors unimpressed, overshadowing a strong quarterly performance and an increase in outlook. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:09 a.m. Tokyo time Hang Seng futures fell 0.8% S&P/ASX 200 futures fell 0.9% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1609 The Japanese yen was little changed at 154.43 per dollar The offshore yuan was little changed at 6.7138 per dollar The Australian dollar was little changed at $0.7159 CryptocurrenciesBitcoin fell 0.7% to $76,683.38 Ether fell 0.8% to $2,440.38 BondsAustralia’s 10-year yield advanced 12 basis points to 5.37% CommoditiesWest Texas Intermediate crude rose 1.3% to $103.79 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
