Exports from Taiwan surged 41% year-on-year to a record high of USD 82.4 billion in August 2026, accelerating from a 32.9% gain in the previous month, mainly supported by the AI-driven boom as demand for technology products remained robust. Growth was mainly driven by strong demand for information, communication and audio-video products (41.8%), parts of electronic products (58%), base metals and articles of base metal (22.4%), machinery (15.2%), and mineral products (70.2%). The US remained the largest export destination, accounting for 28.7% of total exports, with shipments rising 20.7%. Exports also grew to Mainland China and Hong Kong (39.3%), ASEAN countries (42.2%), Europe (34.8%), South Korea (44.6%), and Japan (32%). For the first eight months of the year, total exports reached USD 574.3 billion, 44.2% higher than in the corresponding period of the previous year.

Stocks in Europe were lower on Wednesday, with the STOXX 50 falling 0.7% and the STOXX 600 declining 0.5%, as higher oil prices continued to weigh on market sentiment. Brent crude hit $100 a barrel as tensions between the US and Iran escalated. The rise in energy prices could put further pressure on inflation and reinforce the case for additional monetary policy tightening. The ECB is widely expected to deliver a 25bps rate hike tomorrow, with traders set to assess any further guidance on the policy outlook. Inditex tumbled more than 3% despite reporting a better-than-expected start to its autumn trading season, with currency-adjusted sales rising 9% in August. Rheinmetall was also among the worst performers, falling 2.5% and nearly reversing its 3% gain in the previous session. Energy stocks, meanwhile, moved higher, with TotalEnergies gaining 1%, Shell rising 1%, BP adding 1.7%, Galp advancing 1.6%, and Repsol climbing 2.1%.

Brent crude rose above $100 a barrel on Wednesday for the first time since July, driven by escalating US-Iran tensions and stronger Chinese oil demand. The US military said it had destroyed five Iranian tankers carrying crude following attempts to strike a US Navy warship with ballistic missiles. Iran, meanwhile, claimed to have attacked two American vessels and eight oil tankers in the Gulf, while warning shipping crews near Kuwaiti and Bahraini ports to abandon their vessels. The escalation has heightened concerns over further disruption to global oil supplies, particularly around the Strait of Hormuz. Iran-backed Houthi militants also targeted energy infrastructure in southern Saudi Arabia, including the 400,000-barrel-a-day Jazan refinery. At the same time, recovering Chinese oil demand is supporting prices for African, Canadian and Latin American crude as disruptions around Hormuz force refiners to seek alternative supplies from more distant markets.

Industrial production in France fell 0.4% month-on-month in July 2026, missing market expectations for a 0.3% rebound after a revised 0.1% decline in June. Manufacturing output dropped 0.8% after falling 1% in the previous period, as production declined across almost all major sectors. Transport equipment manufacturing led the declines, falling 2.8% after a 3.8% drop in June, while output of other industrial products decreased 0.5% for a second month. Production of electrical, electronic, and computer equipment fell 0.8%, reversing a 0.2% increase, while food processing output was broadly stable at -0.1%. In contrast, production in extractive industries, energy, and water rose 0.9%, slowing from 3.2%, driven by stronger electricity production and consumption during the second heat wave. On a yearly basis, industrial production fell 0.5%, following a 0.1% decline in June, while production increased 0.8% in the three months to July.

Gold climbed above $4,400 an ounce on Wednesday, ending a three-session decline as the weakening dollar made the greenback-priced metal more affordable for buyers using other currencies. The dollar’s weakness was largely driven by the Japanese yen’s sharp appreciation this month, along with cautious investor positioning ahead of several major central bank decisions. The US Federal Reserve, European Central Bank and Bank of Japan are all expected to raise interest rates this month. Investors are also awaiting key US inflation data this week for additional clues on the Fed’s policy outlook. Meanwhile, oil prices continued to advance amid escalating Middle East tensions, increasing inflation concerns and strengthening expectations for rate hikes. While gold is traditionally viewed as a hedge against inflation, higher interest rates can weigh on demand for the non-yielding asset by making interest-bearing investments more attractive.

The Japanese yen appreciated toward 153 per dollar on Wednesday, holding near its strongest level in almost seven months after US Treasury Secretary Scott Bessent warned traders on betting against the currency. The former hedge fund manager said he has “pretty good insight” on what the Bank of Japan will do when he is making a call and intervening with the yen. The BOJ is broadly expected to raise interest rates next week, while the Takaichi administration has adopted a more hawkish stance as policymakers acknowledge the need to limit excessive yen weakness. The currency is also reversing the bearish forces that drove it to a 40-year low in July, including an unwinding of carry trades and expectations of increased capital repatriation. Meanwhile, private-sector data showed Japanese manufacturers’ sentiment improved for a second consecutive month in September, helped by resilient demand for semiconductors and data centers.