Monday 9/21/2026 p.m.

• Markets start the week on the front foot – Stocks and bonds rallied today, helped by a decline in WTI oil prices to $96 per barrel. The Nasdaq index led the charge, rising more than 2% as tech stocks continue to recover from last week's sell-off, while the S&P 500 finished 1.5% higher. This followed an upbeat tone in Asian and European equities overnight on hopes that diplomatic efforts to lift crude shipments from the Middle East might be advancing. Global bonds rallied hard in response, with the yield on 10-year European government debt falling between 5-10 basis points today (0.05%-0.10%). We are seeing a slightly more muted pick up in North American debt markets, with the 10-year Canadian government bond yield down 4 basis points (0.04%) today.
   
• Diplomacy in the spotlight this week - President Trump and Chinese President Xi Jinping are scheduled to meet on Wednesday in what will be Xi's first trip to the United States since 2023 and his first full state visit since 2015. Both U.S. and Chinese officials offered an upbeat assessment of preliminary talks held over the weekend on a range of issues including artificial intelligence, trade and investment. Expectations are that the headline meeting later this week will deliver an extension of the U.S.-China trade truce, currently set to expire in November. Otherwise, President Trump commented that he would "probably" be open to meeting Iranian President Pezeshkian on the sidelines of the UN General Assembly this week. The President is also expected to meet with leaders of other Gulf states, bolstering hopes for a diplomatic breakthrough that might help ease the energy supply crunch hitting the global economy.
   
• A quiet week on the data front – There was no major data release on the calendar this morning and relatively slim pickings for the week ahead. We will get September business survey data sprinkled through the week, headlined by Wednesday's preliminary Purchasing Managers' Index (PMI), and it should be interesting to hear how firms are reacting to the renewed spike in energy costs. Thursday's durable goods orders will provide some sense of business investment trends, while new home sales and permits will give a sense of how the housing market is holding up amid rising interest rates. Otherwise, a slew of Federal Open Market Committee members are scheduled to speak over the week, providing further potential insight into the rationale for last week's Fed rate hike, and likely next steps for the central bank. Chicago Fed President Goolsbee and St Louis Fed President Musalem both struck a hawkish tone today, warning that further interest rate increases might be needed in the face of stubbornly above-target inflation.

James McCann;
Investment Strategy

^{Source for all data: Bloomberg.}