Markets Brace for US-China Summit, PMI Data, Indonesia Rate Decision in High-Stakes Week

Global markets enter a pivotal week beginning September 21, 2026, headlined by Chinese President Xi Jinping's three-day state visit to Washington to meet US President Donald Trump, alongside the 81st UN General Assembly. The 10-year US Treasury yield has tested the psychological 5% threshold following the Federal Reserve's first rate hike in over three years, with US flash manufacturing PMI due Wednesday as a key test for bond markets. Equities and the dollar have shown muted reactions despite rising yields. Indonesia's central bank announces its rate decision Wednesday under new Governor Destry Damayanti, expected to hold or cut slightly, one week after President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa. Analysts cite concerns over policymaking and a possible MSCI downgrade of Indonesian equities to frontier status.