The S&P Global UK Composite PMI eased to 51.7 in September of 2026 from 52.5 in the previous month, slightly under market expectations of 52, according to a flash estimate. Still, the result marked a third month of expansion in British private sector activity after the surge in prices from the war in Iran triggered back-to-back contractions in May. Activity eased both for the services sector (51.7 vs 52.5 in August) and manufacturing (51.4 vs 52.1). Service providers noted that geopolitical uncertainty in the Middle East constrained orders, pressuring aggregate UK orders to ease, and contrasting with support from technology services. In turn, a group of manufacturers had sales supported by AI investment and defense spending. Meanwhile, employment fell for two straight years with firms still citing National Insurance costs. Also, input cost inflation hit a three-month high on widespread subsector increases, led by labor and fuel. Despite the headwinds, business optimism was unchanged.

Brent crude fluctuated below $100 a barrel on Wednesday after five consecutive sessions of losses, as markets assessed efforts to restore oil flows disrupted by the conflict in the Middle East. Saudi Arabia is preparing to restart exports through its critical East-West pipeline in the coming days, potentially allowing the kingdom to bypass the contested Strait of Hormuz and increase outbound shipments. At the same time, US President Donald Trump said American officials had held a “very productive” meeting with Iranian envoys and indicated that further talks were planned, despite his tough rhetoric toward Tehran during a United Nations speech. Meanwhile, the API reported a 1.8-million-barrel increase in nationwide crude stockpiles, while gasoline and distillate inventories declined. Investors are now awaiting official US Energy Information Administration data later Wednesday for further indications of supply and demand conditions.

The annual inflation rate inched up to 4.4% in August 2026 from 4.3% in July, but undershooting the expected 4.5%. Still, inflation remains well above the SARB's goal of 3%. Transportation remained the main source of upward pressure, with prices rising 8.8% year-on-year, after an 8.9% advance in July. Petrol prices fell 2.0% between July and August, while diesel prices rose 3.1%. Housing and utilities inflation remained elevated at 5.2%, unchanged from July, with electricity, gas and other fuels inflation accelerating to 8.3% from 7.4%. Food inflation also picked up, rising to 1.1% from 0.9%, marking its first increase in nine months. Meanwhile, core inflation, which excludes prices of food, non-alcoholic beverages, fuel, and energy, eased to 4.1% from a two-year high of 4.2% in July and slightly below the expected 4.2%. On a monthly basis, the CPI was flat in August, after increasing by 0.2% in the month before.

Bank Indonesia (BI) maintained its key interest rate at 5.75% for the third straight meeting at its September 23 meeting, as expected, as the rupiah strengthened recently, boosted by capital inflows after volatility in the first half of the year. The decision underscored the central bank's concerns about rupiah stability under newly appointed Governor Destry Damayanti, while keeping inflation within the target range and supporting GDP growth. BI has raised rates by a total of 100 bps in May and June combined, bringing the policy rate to its highest level since April 2025 to attract foreign inflows and shore up the rupiah. The annual inflation rate accelerated to 3.19% in August but remained within BI's 1.5%–3.5% target range. BI expects inflation to remain within the government's 2.5% ± 1% target range and has maintained its GDP growth forecast of 4.9%–5.7% for 2026. BI also kept the rates on its overnight deposit facility and lending facility unchanged at 4.75% and 6.5%, respectively.

European stocks moved higher on Wednesday, with the STOXX 50 rising 0.5% and the STOXX 600 gaining 0.4%, extending their advance for a third consecutive session. The continued decline in oil prices remained a key driver of sentiment, offering further relief on inflationary pressures. Oil prices fell for a sixth straight day amid growing signs that a potential agreement between the US and Iran could help end the war and facilitate the reopening of the Strait of Hormuz. Meanwhile, flash services PMIs for the Euro Area, Germany and France came in way better-than-expected. The banking sector was higher, including HSBC (1%), BBVA (0.6%), Unicredit (1%) and BNP Paribas (1%). The luxury sector also traded in the green, including LVMH (1.3%), Hermes (0.9%) and Richemont (0.9%). Other notable gainers include SAP (1.8%). On the other hand, the telecommunication sector was under pressure, with Telefonica (-1.2%), Orange (-1.8%) and Vodafone (-1.8%) trading lower.

India's HSBC Manufacturing PMI rose to 55.7 in September 2026 from 52.8 in August, marking the strongest improvement in the sector's health since February, preliminary estimates showed. Output and new orders grew at faster rates, with goods producers reporting stronger demand. New export orders also increased at a marginally faster pace, with gains from Brazil, Europe, the UAE and the US. Manufacturing companies also increased buying activity, while shorter supplier lead times supported a further improvement in operating conditions. Input stocks rose at the fastest pace since February, while finished goods inventories increased to an 11-and-a-half-year high. On the price front, input cost inflation picked up, driven by higher spending on electrical components, food, fuel, metals, pharmaceutical ingredients and technology resources. Factory-gate price inflation also strengthened. Looking ahead, business confidence among manufacturers improved in September.