Global Economy Briefing — September 26, 2026
Global economy: Wall Street steadies as Fed shock reshapes markets. Dow gains 0.93%, the 10-year yield edges lower and a softer dollar lifts the real.
Rio Times Global Economy Briefing
The Big Three
- Dow leads Wall Street higher as yields cool The Dow Jones Industrial Average rose 0.93% to 51,829, while the 10-year Treasury yield edged down to 5.17%. Easing yield pressure offered relief to risk assets including emerging markets.
- Dollar softens, offering Brazil breathing room The US dollar index fell 0.25% to 101.035, a move that supports the Brazilian real. A softer dollar reduces imported inflation pressure and gives the Copom more flexibility on Selic cuts.
- Gold holds above US$4,200 as hedges stay on Bullion rose 0.46% to US$4,285 an ounce, its safe-haven bid intact. Investors remain cautious even as the VIX tumbled 5.11% to 14.87, signalling lower near-term anxiety.
United States
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| S&P 500 | 7,743 | 7,704 | Gained 0.51% |
| Dow Jones | 51,829 | 51,350 | Jumped 0.93% |
| Nasdaq | 27,069 | 26,940 | Rose 0.48% |
| US 10-year yield | 5.17% | 5.18% | Down 1 bp |
| VIX | 14.87 | 15.67 | Fell 5.11% |
| Dollar index | 101.035 | 101.285 | Weakened 0.25% |
Europe & United Kingdom
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| UK 10-year gilt yield | 5.36% | 5.38% | Down about 3 bp |
| Euro Stoxx 50 | 6,303 | 6,273 | Rose 0.48% |
| DAX | 25,409 | 25,267 | Rose 0.56% |
Asia-Pacific & Emerging Markets
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| Brazil Selic rate | 13.75% | 14.00% | Fifth straight cut |
| Brazilian real | 5.1868 per US dollar | 5.1928 per US dollar | Firmed 0.11% |
| BoJ policy minutes (July meeting) | Due Mon 28 Sept, Tokyo | July 30-31 meeting | In focus for yen |
| Instrument | Level | Session |
|---|---|---|
| S&P 500 (US) | 7,743 | +0.51% |
| Ibovespa (Brazil) | 183,477 | -0.27% |
| USD/BRL | 5.1868 | -0.11% |
Global economy — Source: RT close, 2026-09-25. Figures rendered directly from the feed.
Economic Calendar — Sunday, September 27, 2026 (GMT)
| Time | Country | Event | Consensus | Prior |
|---|---|---|---|---|
| 23:50 | JP | BoJ July Meeting Minutes (Mon 28 Sept, 08:50 Tokyo) | — | — |
Live Market IntelligenceGlobal Markets — Live Board
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Global Markets — Live Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| SPX | 7,751 | +0.29% | — | — | — | — | — |
| NDX | 29,799 | +0.93% | — | — | — | — | — |
| DJI | 53,810 | +0.03% | — | — | — | — | — |
| RUT | 3,041 | +0.46% | — | — | — | — | — |
| US10Y | 4.6760 | -0.17% | — | — | — | — | — |
| VIX | 14.60 | -4.45% | — | — | — | — | — |
| DAX | 26,331 | -0.23% | — | — | — | — | — |
| FTSE | 10,833 | -0.10% | — | — | — | — | — |
| CAC | 8,675 | -0.46% | — | — | — | — | — |
| STOXX | 659.48 | -0.16% | — | — | — | — | — |
| NIKKEI | 67,524 | +0.83% | — | — | — | — | — |
| HSI | 25,440 | -0.83% | — | — | — | — | — |
| KOSPI | 6,579 | +3.68% | — | — | — | — | — |
| CSI300 | 4,691 | +0.58% | — | — | — | — | — |
| NIFTY | 24,436 | -0.15% | — | — | — | — | — |
| TSX | 36,619 | +0.39% | — | — | — | — | — |
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
01 A Calmer Session After the Fed Storm
Wall Street steadied after a volatile week, with the Dow Jones Industrial Average rising 0.93% to 51,829. The S&P 500 added 0.51% to 7,743, while the Nasdaq Composite gained 0.48% to 27,069.
The relief came as the US 10-year Treasury yield edged down to 5.17%, easing the pressure that had squeezed equities and emerging markets. Gold rose 0.46% to US$4,285 an ounce.
The VIX dropped 5.11% to 14.87, showing that traders see fewer near-term shocks. But the dollar index also softened 0.25% to 101.035, giving currencies like Brazil’s real a chance to recover lost ground.
02 The Higher-for-Longer World Is Sinking In
The Federal Reserve’s September 16 decision to raise rates to 3.75%-4.00% continues to shape global markets. The median projection of Fed officials points to one more quarter-point increase before year-end, keeping short-term yields elevated.
The dollar’s softening on Friday relieved some of that pressure, but the underlying message remains hawkish. Higher US rates have narrowed the room for emerging-market central banks to ease independently.
For Brazil, the arithmetic is delicate: the Selic was cut to 13.75%, yet the differential against US rates is still wide enough to attract some carry-seeking funds. The Copom must watch the real closely.
03 Brazil Finds a Brief Window as the Dollar Pauses
The real caught a break as the dollar index fell to 101.035, a small reprieve after weeks of pressure. Brazil’s central bank has cut the Selic five straight times to 13.75%, betting that domestic disinflation justifies looser policy.
The pre-election period adds political noise, making the currency sensitive to fiscal headlines. On Friday the real firmed slightly to 5.1868 per US dollar.
Brazilian equities did not follow, with the Ibovespa slipping 0.27% to 183,477.
A further drop in US yields could open more room for the BCB. But if the Fed delivers its projected hike and the 10-year climbs back above recent highs, even a 13.75% Selic may not be enough to steady the real.
What to watch next week
- Monday 28 Sept: Bank of Japan minutes of the July meeting (08:50 Tokyo time)
- Wednesday 30 Sept: US PCE inflation data and Micron quarterly results
- Thursday 1 Oct: Nike quarterly results and the BoJ Summary of Opinions from the September meeting
- Friday 2 Oct: US September jobs report, the main test of the rate path
- Ongoing: Brazil election risk, the real’s performance and any shift in Selic expectations
Frequently Asked Questions
Why did US stocks rise despite the Fed shock?
The 10-year Treasury yield edged down to 5.17%, taking some pressure off valuations, and the VIX dropped 5.11%.
What matters most for Brazil right now?
The real is the key variable. A softer dollar helps, but higher US yields and pre-election risk still weigh.
Where is the Selic likely to go next?
After the cut to 13.75%, markets see limited room for aggressive easing while the Fed signals more hikes.
Is gold still a good hedge for Latin American investors?
Gold at US$4,285 an ounce protects against dollar swings and global risk, but it pays no carry like Brazilian bonds.
What should investors watch in Asia next?
The Bank of Japan’s July meeting minutes, due on Monday 28 September Tokyo time, may shift yen and regional bond expectations.
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