Deutsche Bank rose 4.3%, leading the financial sector after launching a €500 million share buyback. UniCredit added 2.5% ahead of a meeting between CEO Andrea Orcel and the German finance minister to discuss Berlin’s conditions for selling its stake in Commerzbank.

Industrial names also outperformed, with Safran and Rheinmetall each gaining more than 2%, extending the strong momentum seen in the sector in the previous session. In contrast, SAP fell 3%, pressured by downbeat signals from Intuit’s earnings in the US.

Oil prices remained volatile amid signs of rising crude shipments from the Persian Gulf, as investors monitored talks between Iran and Oman over a possible resumption of shipping through the Strait of Hormuz. Entain and Persimmon stayed under pressure after FTSE Russell signalled they would be dropped from the FTSE 100 in its latest index review.

Separately, Ofgem announced a 4% increase in the UK energy price cap from October. Investors are also looking ahead to Nvidia’s results for further insight into the strength of AI-related demand.

At the same time, satellite data suggested that Saudi Arabia may be stepping up oil loadings from terminals within the Persian Gulf. Iran and Oman are also said to be exploring a broader agreement on managing traffic through Hormuz, though it remains unclear whether Washington would accept any deal that does not include the United States. In the US, EIA data showed that crude inventories were essentially flat last week, while gasoline and diesel stocks fell to seasonal lows.

Gasoline inventories dropped by 2.536 million barrels to 206.8 million barrels, a larger-than-expected draw compared with forecasts for a 0.7 million-barrel decrease. Distillate stockpiles—which include diesel and heating oil—fell by 2.228 million barrels to 103.4 million barrels, exceeding expectations for a 1.6 million-barrel decline. Net US crude imports decreased by 161,000 barrels per day.

The latest EIA data showed that US gasoline inventories fell by 2.536 million barrels in the week ending August 21st, a decline far larger than expected. Stockpiles are now about 6% below the five-year average, highlighting persistent tightness in the gasoline market. Reflecting this, AAA reported that the average US price for regular gasoline rose to $4.101 per gallon on August 26th.

On the international front, Ukraine has continued to target major Russian refineries, pushing refinery runs toward multiyear lows, while Moscow has extended its gasoline export ban, further constraining global supply.

Some upward pressure on prices was tempered by news that Oman and Iran reached an agreement on the use of the Strait of Hormuz. However, Tehran cautioned that the deal would not result in an immediate reopening of the waterway.

At the same time, Saudi Arabia’s oil loadings appear to be rising sharply as the kingdom redirects shipments to avoid threats from Yemen’s Houthi movement in the Red Sea.

On a week-over-week basis, the current reading reflects a much smaller change than the previous week’s advance. While the earlier 1.0% gain suggested a stronger step-up in refinery activity, the latest 0.2% figure indicates that refiners are now increasing capacity use more cautiously. This moderation in utilization growth may be watched closely by market participants assessing near-term fuel supply dynamics and refining margins in the United States.

The move back into positive territory signals a stabilization in supply after the earlier drawdown, though the change is minimal in volume terms. Market participants monitoring distillate fuels and seasonal demand trends are likely to view the latest reading as a pause rather than a decisive shift in the underlying supply picture for heating oil in the United States.

The sharp moderation in the pace of production growth suggests refiners may be responding to softer demand signals, shifting seasonal patterns, or margin pressures after a period of stronger output gains. While production is still rising, the reduced increment indicates a more cautious approach from producers compared with earlier data, potentially affecting inventory levels and price dynamics in the weeks ahead.

The widening negative reading suggests that production is contracting at a faster pace than before, potentially tightening availability for freight, industrial users, and seasonal heating demand. While the absolute levels of production were not disclosed, the shift from -0.054M to -0.091M highlights a notable deterioration in momentum that market participants may watch closely for its impact on energy prices and broader economic activity.

Energy traders, logistics operators, and industrial consumers are likely to factor the deeper decline into their short-term planning, particularly if subsequent data confirm a sustained downtrend in U.S. distillate output. For now, the latest figures point to growing supply-side pressures in a critical segment of the fuels market.

The move from a drawdown to a build at Cushing, a key storage and delivery point for U.S. crude, suggests a loosening in immediate supply tightness compared with the prior period. While the data alone do not reveal the underlying drivers—such as changes in refinery runs, import flows or domestic production—the turnaround in inventories will be closely watched by traders as they reassess short-term balance and its potential impact on U.S. benchmark crude pricing.

Market participants are likely to factor this latest inventory build into their expectations for near-term demand and storage capacity at the hub, with any sustained trend in rising stocks potentially signaling a softer physical market ahead.

While imports are still contracting, the much smaller decline indicates that U.S. buyers may be stabilizing their crude intake after a sharper pullback in the previous period. The change could reflect adjustments in refinery utilization, inventory management, or shifting expectations around domestic production and global supply.

Market participants will be watching upcoming data closely to see whether this slowdown in the import decline marks the start of a more sustained normalization in U.S. crude flows or merely a brief pause in a broader downtrend.

The report compares the change in refinery throughput from the current week to the prior one, highlighting a sharp moderation in momentum. While the prior period pointed to a notable ramp-up in refining activity, the latest reading suggests refiners have paused that upward trend, keeping overall crude processing levels essentially unchanged on a week-over-week basis. Investors and energy analysts will be watching subsequent data to see whether this marks the start of a plateau in U.S. refining runs or just a brief pause after earlier gains.

The shift from a modest inventory increase to a notable drawdown suggests stronger demand, constrained supply, or a combination of both in the U.S. gasoline market. While the data alone do not reveal the underlying drivers, such a move in inventories can heighten attention from energy traders and policymakers, as sustained declines often feed into higher wholesale and potentially retail fuel prices.

Market participants will be watching upcoming reports to see whether this drawdown marks the start of a broader tightening trend or a one-off adjustment following prior stock builds. For now, the latest figures point to a meaningful reduction in available gasoline supplies heading into the close of August 2026.

The sharper contraction in stocks suggests a notable tightening in the distillate market, which includes diesel and heating oil—key fuels for freight, industrial activity, and seasonal heating demand. Compared with the previous week’s decline, the latest figure indicates that either consumption has strengthened, supply has become more constrained, or some combination of both.

Market participants in energy and related sectors will likely watch subsequent EIA reports closely to see whether this deeper-than-prior drawdown marks the start of a sustained trend or a short-term fluctuation in U.S. distillate balances.

The marked reduction in the pace of inventory build may suggest a closer balance between supply and demand compared with the prior period, when stocks expanded more robustly. While the current figure still reflects a net increase rather than a drawdown, the minimal growth in inventories could temper concerns about oversupply and may be watched closely by energy traders and market participants assessing future price trends.

Investors and analysts will likely interpret the latest data in the context of broader economic signals and production trends in the United States, as even small changes in inventory momentum can influence expectations around refinery activity, imports, and domestic output in the weeks ahead.

Energy stocks gained even as oil prices softened amid renewed talks between Iran and Oman, with crude still trading at elevated levels and the outlook for a potential US-Iran peace deal remaining uncertain. Canadian Natural, Suncor and Cenovus each rose about 1%.

Mining shares mostly declined as gold prices retreated following US PCE data that topped forecasts, bolstering expectations for another Federal Reserve rate hike. Agnico Eagle, Barrick and Franco-Nevada slipped more than 1%, while WPM dropped over 2%.

The weaker inflation print pushed bond yields lower and strengthened expectations for an imminent cut in the Selic benchmark interest rate. Financial stocks outperformed: Itaú and Itaúsa advanced around 1%, Bradesco gained more than 1.5%, and Banco do Brasil rose nearly 2%.

Utilities also moved higher, with Sabesp jumping more than 2.5% after Itaú BBA reiterated its buy recommendation, following the stock’s recent decline after its quarterly earnings release. In the commodities space, Vale added over 0.5% on the back of firmer iron ore prices.

In contrast, Petrobras slipped almost 0.5% as oil prices weakened after reports that Iran and Oman had discussed creating a “temporary joint maritime corridor” in the Strait of Hormuz.

The move from 4.0% to 4.6% suggests that incoming data for the quarter have been more robust than earlier readings implied. While GDPNow is not an official forecast, it is closely watched by markets as a real-time gauge of how actual GDP growth may be shaping up, and the latest reading will likely reinforce expectations of solid U.S. output in the third quarter.

Brent crude fell for a third consecutive session, helping to pull bond yields lower and easing some inflation worries. Investors also assessed fresh US inflation data, as the PCE price index rose 0.2% in July, slightly above expectations.

In Europe, ECB policymakers were reported to be ready to raise interest rates at their September meeting, while remaining cautious about signaling any further tightening beyond that. Among individual stocks, SAP declined about 3% after US software maker Intuit issued a disappointing forecast, and UBS downgraded the German software group to “neutral.”

The increase from June’s 1.50% to July’s 2.20% suggests a firming in core price pressures as the summer progressed, with the gauge moving closer to, and slightly above, the typical 2% benchmark often associated with medium-term inflation goals. While the data do not on their own determine policy, the July reading could draw attention from market participants and analysts monitoring how persistently inflationary pressures are evolving in the U.S. economy.

With the latest figures now confirmed as of 26 August 2026, investors and policymakers will be watching upcoming releases to see whether July’s step-up in the Dallas Fed PCE measure proves to be a one-off move or the beginning of a more sustained uptrend in underlying inflation.

Nvidia shares were volatile before the company’s results, due after the close, which are expected to offer crucial guidance on capital expenditure by AI hyperscalers—a key driver of US equity market gains in recent years. Other mega-cap tech names, including Microsoft, Tesla, Alphabet, and Amazon, also traded lower.

Intuit dropped 10% after its outlook fell short of investors’ more optimistic expectations. In contrast, Meta rallied 4% following news it had agreed to a $16.7 billion settlement with US states over its social media practices involving teenagers.

Outside the tech sector, traditional cyclical and defensive industries came under pressure as investors remained cautious about the macroeconomic backdrop. Solid consumer spending and income data, combined with stronger-than-expected PCE inflation readings, reinforced expectations that the Federal Reserve will maintain a restrictive policy stance.

Capesize rates led the gains, with the sub-index jumping 6.3% to 5,033, also the strongest level since August 10. Average daily earnings for capesize vessels — which typically transport about 150,000 tons of iron ore and coal — increased by $2,706 to $42,148.

Iron ore futures also advanced as Typhoon Narra disrupted shipping routes in the South China Sea, tightening vessel availability and pushing freight costs higher.

The panamax index climbed 3.7% to 2,246, its highest reading since August 13, with average daily earnings up $717 to $20,213. The supramax index inched 0.1% higher to 1,644.

The PCE price index rose 0.2% in July, exceeding expectations for a 0.1% increase, while annual inflation accelerated to 3.7% versus a 3.6% consensus forecast. Core PCE climbed 0.2% month-over-month and 3.3% year-over-year, both matching projections. Consumer spending and personal income also slightly outpaced expectations.

Separately, US GDP expanded 1.5% in the second quarter, consistent with the initial estimate, while durable goods orders increased 1.1% in July, more than double the 0.5% gain expected.

Following the data, markets are now assigning roughly a 60% probability that the Fed will leave interest rates unchanged next month, down from about 64% beforehand, according to the CME FedWatch Tool.

On the geopolitical front, Iran announced it has resumed talks with neighboring Oman on managing the Strait of Hormuz, amid mounting economic pressure from US President Donald Trump.