FTSE 100’s Broad Selloff: 90 Stocks Down, Only Oil Giants Shine

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‼️ 🇬🇧 FTSE 100 is on track for its worst weekly drop since April. The MSCI All Country World Index is off by 1.5% for the week. The biggest drag has been from heavyweight names like HSBC, Unilever and Rolls-Royce. But for the week, 90 stocks are down, so it’s broad weakness. Unsurprisingly, the only names to have fared well are Shell and BP, boosted by the jump in oil prices.

Japan’s Input-Cost Squeeze Keeps Inflation Pressure Alive

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‼️ 💴 🇯🇵 Japan’s producer-price inflation remained elevated in August, with input prices rising 7.6% year on year—above the 7.4% consensus estimate—though marginally slower than July’s revised 7.7%, the strongest pace since February 2023. Prices fell 0.2% month on month after a revised 0.4% increase in July, but oil and coal products, chemicals, IT and communications equipment, and non-ferrous metals continued to drive annual cost pressures. The data underscore the challenge for Japanese companies as higher energy, freight, packaging and labour costs sustain pressure to raise prices for consumers.

India’s Bond Bears Are Betting the RBI Will Drain the Liquidity Punchbowl

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‼️ 🇮🇳 Bets against India’s short-term government bonds are building as traders position for the Reserve Bank of India to drain the banking system’s roughly ₹11 trillion liquidity surplus. Overnight short positions in the five-year benchmark pushed daily borrowing above ₹100 billion ($1 billion) at the start of the month—about double early-August levels—making it the market’s most-shorted bond on several occasions, an unusual development. The move signals growing expectations that sustained RBI liquidity absorption will lift short-end borrowing costs and push yields higher.

BOJ Set for September Hike as Economists See Another Move by January

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‼️ 🇯🇵 The Bank of Japan is expected to raise its benchmark rate at its Sept. 18 meeting, with most economists also forecasting a second hike by January as policy normalization accelerates. In Bloomberg’s survey of 52 BOJ watchers, 93% anticipated another move by January—about one-third in December and the remainder in January—while none expected an October hike.