Despite this modest uptick in unemployment, labor market conditions remain tight, underscoring persistent labor shortages across many sectors amid ongoing military mobilization following Russia’s invasion of Ukraine in February 2022 and sustained emigration. Authorities expect these labor constraints to continue, forecasting a shortfall of about 3.1 million workers by 2030.

Renewed conflict in the Middle East continued to push oil prices higher, fuelling inflation worries and reinforcing expectations of tighter monetary policy. The bond sell-off also intensified, with longer‑maturity European government bond yields rising to multi‑decade highs in several economies.

Utilities recorded sharp losses as European natural gas prices climbed further, with Enel and Iberdrola falling 2.6% and 1.2%, respectively. Consumer discretionary shares came under pressure as well, with Inditex down 2% and LVMH off 2.5%.

Volkswagen dropped almost 4% after it was removed from the STOXX 50 index, to be replaced by Nokia, whose shares have rallied strongly this year amid the global boom in AI infrastructure.

Technology and financial shares led the advance, recovering after the recent rise in bond yields had weighed on credit‑sensitive sectors. Meta climbed 2.5%, and Wells Fargo gained 3%.

Nvidia rallied nearly 5% following reports it is close to acquiring AI startup Hugging Face in a deal valued at about $14 billion. Dell Technologies jumped as much as 10% during the session after topping earnings expectations and raising its revenue outlook. By contrast, Palo Alto Networks dropped 7% even though it beat profit estimates. Broadcom is scheduled to report results after the market close.

At the same time, renewed clashes between Iran and the United States reinforced expectations of constrained near‑term energy supplies from the Middle East, helping to keep Treasury yields elevated across the curve.

Oil prices remained elevated due to supply disruptions linked to the escalating conflict in the Middle East, further intensifying inflationary pressures and reinforcing expectations of a more hawkish stance from central banks. At the same time, financial markets are now pricing in nearly a 66% probability of a 25-basis-point rate hike by the Federal Reserve later this month, up sharply from about 40% just a week earlier.

On the downside, Experian, Reckitt Benckiser and London Stock Exchange Group were among the biggest drags, shedding between 2.4% and 2.9%. By contrast, mining stocks including Endeavour, Fresnillo, Antofagasta and Anglo American advanced sharply on the back of higher metal prices, while InterContinental Hotels Group and Standard Chartered each rose by almost 2%.

In corporate news, BP named Ian Tyler as its new chair following the unexpected departure of Albert Manifold earlier this year. Separately, Ryanair cut its full-year 2027 traffic forecast and cautioned that European short-haul airfares could rise “materially” if elevated oil prices persist.

Oil prices, a key Canadian export, remained elevated amid supply disruptions linked to the escalating conflict in the Middle East. Higher energy costs continued to add to inflationary pressures and reinforced expectations for a more hawkish stance from central banks. Canadian government bond yields climbed across the curve.

US Energy Secretary Chris Wright said 17 million barrels of oil moved through the Strait of Hormuz on Monday, the highest daily volume since the conflict began. Data from Kpler showed that four commodity vessels transited the strait on Tuesday, down from ten on Monday.

The United States conducted additional strikes on Iran and warned of the possibility of more severe attacks. Iranian media reported strikes on multiple targets near the Strait of Hormuz, while Iran said it had targeted US assets in Bahrain, Jordan, Kuwait, and Iraq. These latest attacks, which began early this week and were the first in nearly a month, have further complicated efforts to bring the conflict to an end.

At the same time, renewed escalation of the war in the Middle East continued to strain the global supply of sulfuric acid, leading to shortages of this key input for copper refiners. These supply concerns were compounded by lingering fears that the US presidential administration could impose tariffs on unprocessed copper products, prompting buyers to front-load purchases. As a result, backwardation steepened across major Western copper exchanges.

The moderation in August suggests that while demand in France’s auto market remains in positive territory, the pace of expansion is losing some momentum compared with mid-summer levels. July’s 9.0% rise, measured against July a year earlier, marked a stronger phase of growth that has since cooled slightly heading into late summer.

The year-over-year comparison framework highlights that both “previous” and “current” readings reflect changes against the same months a year before, rather than sequential month-on-month shifts. As a result, the move from 9.0% in July to 7.4% in August points to a softer, but still solid, annual growth rate in French car registrations.

The updated data, published on 2 September 2026, indicate that while the change is relatively small, it may draw attention from market participants monitoring Denmark’s external position and the stability backdrop for the Danish krone. Further monthly releases will be watched for signs of whether this is the start of a trend or a temporary adjustment in reserve levels.

Adding to the uncertainty, Russia has suspended its floating export duty on wheat through the end of 2026, after its wheat exports in August fell by more than 50% compared with the same month a year earlier. Although Russia can still ship via its Baltic ports, limited capacity there remains a structural constraint. Ukraine’s wheat exports have also dropped sharply, down 34% year-to-date, and the UAC expects further disruptions at Ukrainian ports.

On the diplomatic front, Turkey’s president stressed the need for a mechanism to permanently secure maritime transit, while Russia’s foreign minister said he saw no basis for such an agreement.

The moderation in the rate of inventory decline suggests that the earlier pace of tightening in gasoline stocks has eased. While inventories are still falling, the smaller draw may indicate a slight cooling in demand growth or improved supply conditions in the short term. Investors and energy market participants will be watching subsequent reports closely to see whether this shift marks the start of a more sustained trend in U.S. fuel markets.

The comparison is made on a week-over-week basis, with the current 0.6% reading representing the change from the previous week, while the earlier 0.2% figure captured the change from that earlier week to its preceding one. The data suggest a growing momentum in refining activity, which market participants may watch closely for implications on product supply and inventory trends in the weeks ahead.

This reversal from a modest build to a net draw could indicate stronger end-user demand or adjustments in refinery output and distribution. While the absolute change is relatively small, the move into negative territory may attract attention from traders and analysts monitoring distillate markets ahead of the colder months, when heating oil consumption typically rises.

The rise from 0.061M to 0.073M suggests refiners are gradually ramping up activity, which may reflect improving demand conditions or adjustments in refinery operations. While the increase is not dramatic, the upward shift in the indicator highlights a subtle strengthening in U.S. gasoline output that market participants will be watching for signs of a sustained trend.

The move from a sizeable stock draw to a stock build may signal a softening in distillate demand or adjustments in refinery output, particularly for products such as diesel and heating oil. Traders and analysts often watch these figures closely, as changes in distillate inventories can influence expectations for industrial activity, transportation demand, and seasonal consumption patterns in the United States.

The improvement in the indicator may signal a tentative stabilization in the distillate market, which includes key fuels such as diesel and heating oil. The shift from a deeper to a milder decline could reflect adjustments in refinery operations or evolving demand patterns across transportation, industrial, and commercial sectors.

Investors and energy market participants will be watching subsequent data releases closely to determine whether this moderation continues, potentially pointing to a turning point in U.S. distillate fuel supply trends.

The pronounced drop in the pace of inventory builds at Cushing — a critical delivery point for U.S. crude benchmarks — may reflect shifting dynamics in supply, demand, or pipeline flows. While stocks are still increasing, the near-flat growth contrasts with the prior period’s more robust build, and will be closely watched by traders and analysts for clues about underlying market tightness and potential implications for U.S. oil prices.

The shift indicates that while imports are still contracting, the pace of decline has nearly halved compared with the prior reading. This easing in the drop may reflect evolving dynamics in domestic demand, refinery runs, or sourcing strategies, as the U.S. adjusts to changing conditions in the global oil market.

Market participants will be watching upcoming data closely to see whether this moderation in import declines continues, potentially signaling a stabilization in U.S. crude buying patterns after a period of more pronounced pullbacks.

The figures are reported on a week-over-week basis, comparing changes in the current week to those in the prior week. After a marginal contraction previously, the return to positive territory suggests a pickup in refinery activity, which can have implications for fuel output and near-term product supply dynamics in the U.S. market.

This swing from a slight build to a notable decrease suggests either firmer demand for crude oil, tighter supply conditions, or a combination of both. For energy markets and investors, such a draw in inventories is often interpreted as a supportive factor for oil prices, as it points to reduced available supply in storage. Market participants will be watching upcoming data closely to see whether this marks the start of a sustained trend in U.S. crude balances or a one-off adjustment in stock levels.

Outside of transportation, demand strengthened in several key categories, including primary metals (2.0%), machinery (0.8%), and fabricated metal products (0.6%). In contrast, orders declined for computers and electronic products (-1.1%) and for electrical equipment, appliances, and components (-0.3%). Excluding transportation, factory orders increased 0.6%, while excluding defense, they rose 1.0%.

Financials were mostly higher: RBC and TD Bank each advanced nearly 0.5%, while BMO and Scotiabank rose about 1%. Mining stocks rebounded as gold prices recovered from a recent selloff, with Barrick and Wheaton Precious Metals (WPM) gaining close to 4% and Agnico Eagle adding 2.5%.