Global markets faced pressure in September as persistent inflation, rising interest rates and geopolitical tensions weighed on investor sentiment. Stock markets declined modestly, while bond yields rose amid concerns about inflation and government deficits. Higher energy prices, partly driven by ongoing conflict in the Middle East, added to inflationary pressures.
Trade tensions between Canada and the U.S. intensified, with tariffs and import restrictions creating further uncertainty for Canadian businesses, exports and employment. Meanwhile, the U.S. Federal Reserve and European Central Bank raised interest rates to combat inflation, while China's economy continued to benefit from strong exports despite weak consumer spending and declining business investment.
Despite September's declines, many equity markets remained positive for the year. The S&P/TSX Composite Index was up 11.11% year to date, while emerging markets continued to show strength. Looking ahead, inflation, interest rate decisions and geopolitical uncertainty will remain important factors influencing markets. Maintaining a diversified portfolio and a long-term investment perspective remains important in this uncertain environment.
Read the September 2026 Market Update from Canada Life Investment Management (opens in a new tab) for more details on the economic forces shaping markets and their potential implications for investors.
The information provided is based on laws, regulations, and other rules applicable to Canadian residents and is believed to be accurate as of the date of publication. Changes in legislation, regulations, or their interpretation may affect the accuracy of this information. The information is general in nature and is not intended to address any specific situation. It should not be relied upon as a substitute for professional advice. Individuals should consult with appropriate legal, accounting, tax, or other professional advisors regarding their particular circumstances.
The views and opinions expressed in this commentary/article may not necessarily reflect those of IPC Wealth.