ST. LOUIS, MO – September 24, 2026 (STL.News) Overseas Markets – Overseas stock markets were mostly lower Thursday as investors faced another surge in government bond yields, oil prices above $100 a barrel, and uncertainty around high-level talks between the United States and China.
Japan stood out from the broader weakness, with the Nikkei 225 advancing as semiconductor and artificial intelligence-related stocks attracted buyers. Markets in mainland China, Hong Kong and Australia moved lower, while European equities opened under pressure.
The moves followed a difficult Wednesday session on Wall Street in which all three major U.S. indexes declined as Treasury yields surged to levels not seen since before the global financial crisis.
For American investors preparing for Thursday’s session, higher bond yields and elevated oil prices have become increasingly important. Higher energy costs threaten to keep inflation elevated, while rising Treasury yields raise borrowing costs and offer investors a potentially more attractive alternative to equities.
Overseas Markets – Major overseas indexes
| Market | Index | Level | Change |
|---|---|---|---|
| Japan | Nikkei 225 | 65,513.99 | +0.76% |
| Hong Kong | Hang Seng | 24,761 | -0.29% |
| China | Shanghai Composite | 3,888 | -1.22% |
| China | CSI 300 | — | -1.7% |
| Australia | S&P/ASX 200 | 8,702.00 | -0.7% |
| France* | CAC 40 | 8,061.10 | about -0.8% |
| Germany* | DAX | 25,183.19 | about -0.9% |
| United Kingdom* | FTSE 100 | 10,693.15 | about -0.1% |
*European readings reflect early Thursday trading rather than closing levels.
Overseas Markets – Japan rises while China retreats
Overseas Markets: Japan’s Nikkei 225 gained approximately 0.8% to finish at 65,513.99, bucking weakness across much of the region. Semiconductor and other technology-related shares benefited from continued investor interest in artificial intelligence.
The broader Japanese market was less robust, however, illustrating that the advance was not uniform.
Japanese financial markets are also contending with unusually high government bond yields and a weak yen. Japan’s 10-year government bond yield reached its highest level in roughly 30 years during overnight trading.
The yen’s weakness adds another complication for Japan because the country imports much of its energy. A weaker currency can increase the domestic cost of oil and other commodities priced in dollars.
Chinese markets moved sharply in the opposite direction.
The Shanghai Composite dropped 1.22% to approximately 3,888, while the blue-chip CSI 300 fell about 1.7%. The Shenzhen Component declined 2.34%, and the technology-heavy ChiNext dropped 2.68%.
Hong Kong’s Hang Seng Index held up somewhat better, declining 0.29% to 24,761.
Investors were cautious ahead of talks between President Donald Trump and Chinese President Xi Jinping in Washington. Trade, artificial intelligence and geopolitical issues are among the matters drawing market attention surrounding the meeting.
Overseas Markets – Australia falls as investors reduce risk
Overseas Markets: Australia’s S&P/ASX 200 dropped approximately 0.7% to 8,702.
The decline reflected the broader pressure facing risk assets as investors adjusted to higher global borrowing costs and volatile commodity prices.
South Korea’s stock market was closed for the Chuseok holiday, removing one of Asia’s largest equity markets from Thursday’s regional trading picture.
Taken together, Asian markets delivered a mixed but generally cautious signal. Japan’s strong performance kept the region from showing uniform weakness, but losses in China, Hong Kong and Australia showed investors remained reluctant to take on more risk.
Overseas Markets – European markets open lower
Overseas Markets: The cautious sentiment carried into Europe.
France’s CAC 40 fell nearly 0.8% in early trading to approximately 8,061. Germany’s DAX declined roughly 0.9% to about 25,183, while Britain’s FTSE 100 was comparatively resilient, slipping approximately 0.1% to around 10,693.
The broader STOXX Europe 600 fell about 0.6% in early trading.
European investors faced many of the same concerns affecting Asian and American markets: elevated oil prices, rising government bond yields, inflation risks, and uncertainty surrounding geopolitical developments.
European bond yields were also moving higher Thursday, extending the pressure seen across global fixed-income markets.
Overseas Markets – Treasury yield reaches new multiyear high
Overseas Markets: The bond market may be the most important development for U.S. investors Thursday.
The benchmark 10-year U.S. Treasury yield touched approximately 5.145% during early European trading, reaching another post-financial-crisis high.
The move followed Wednesday’s dramatic Treasury selloff after stronger-than-expected U.S. purchasing managers’ data reinforced expectations that inflationary pressure and economic strength could give the Federal Reserve room to maintain tighter monetary policy.
The 10-year yield had already reached around 5.14% Wednesday, its highest level since 2007.
The 30-year Treasury yield also remained above 5.4% Thursday morning after reaching approximately 5.415% Wednesday.
Those levels matter well beyond the government bond market.
Treasury yields influence mortgage rates, corporate borrowing costs and the discount rates investors use when valuing stocks. As risk-free yields rise, investors can demand higher potential returns before accepting the additional risk of equities.
High-growth and technology stocks can be particularly sensitive because much of their valuation depends on earnings expected years into the future.
Overseas Markets – Oil remains above $100
Overseas Markets: Energy markets are adding another layer of uncertainty.
Early Thursday, benchmark U.S. crude was around $92.78 per barrel, while Brent crude was approximately $103.67. Later European-market reports showed Brent moving above $105 as prices continued to fluctuate.
Oil remains substantially above levels seen before the current U.S.-Iran conflict intensified.
That creates a potential inflation problem.
Higher crude prices eventually affect gasoline, diesel, aviation fuel, shipping, manufacturing, and transportation expenses. Businesses may absorb some of those costs, but sustained increases can ultimately filter through to consumers.
The combination of expensive energy and high interest rates presents a particularly challenging environment because the Federal Reserve must balance inflation risks against the potential economic consequences of tighter financial conditions.
Overseas Markets – Wall Street fell Wednesday
Overseas Markets: Thursday’s overseas trading followed a broadly negative U.S. session.
The Dow Jones Industrial Average fell 352.10 points, or approximately 0.7%, to 51,511.59.
The S&P 500 declined about 0.8% to 7,706.03.
The technology-heavy Nasdaq Composite dropped approximately 1.1% to 26,936.04.
Energy was the only S&P 500 sector to finish Wednesday in positive territory as rising crude prices supported oil and gas companies.
Communication services and utilities were among the market’s weaker areas.
The Nasdaq’s decline followed consecutive record closes, highlighting how quickly rising interest rates can shift sentiment toward growth-oriented stocks.
Overseas Markets – What U.S. investors should watch Thursday?
Several developments could determine whether Wednesday’s Wall Street weakness extends into Thursday.
Treasury yields remain near the top of the list. A sustained move above 5% in the benchmark 10-year yield changes the relative attractiveness of stocks versus bonds and increases financing costs throughout the economy.
Oil is the second major variable. Brent crude remaining above $100 increases concerns that energy inflation could persist and complicate the Federal Reserve’s efforts to contain broader price pressures.
U.S.-China relations are another immediate focus as markets await developments surrounding the Trump-Xi meeting.
U.S. stock futures pointed lower in early Thursday trading. Dow futures were down roughly 0.4%, while S&P 500 futures were approximately 0.6% lower in early indications.
Futures can change significantly before the opening bell and should not be interpreted as a prediction of where the market will close.
Overseas markets send a cautious signal
The overnight session does not point to indiscriminate selling across global markets. Japan’s advance demonstrates that investors are still willing to buy areas where they see strong growth prospects, particularly technology and artificial intelligence-related companies.
But the broader picture remains cautious.
Chinese equities fell sharply, Australian stocks declined, and major European indexes opened lower. At the same time, global government bond yields remained elevated and crude oil stayed above levels that could create additional inflationary pressure.
For Wall Street, the critical relationship Thursday may therefore be less about any individual overseas index and more about the interaction among oil prices, Treasury yields and expectations for Federal Reserve policy.
If Treasury yields and crude prices continue rising together, equities could face additional valuation and inflation pressure. If either retreats, some of that pressure could ease.
After Wednesday’s decline on Wall Street, Thursday begins with investors facing an unusually important bond market, volatile energy prices and significant geopolitical developments — all while major U.S. stock indexes remain at historically elevated levels.
Market data are based on completed Asian trading and early European trading on Sept. 24, 2026. European indexes, commodities, bond yields, and U.S. futures can change throughout the trading day.
This article is for informational purposes only and does not constitute investment, financial, or trading advice.
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