Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Norway Core Inflation Rises to 3% in August 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Bank of England Sees Surge in Higher-Risk Collateral 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Asian Currencies Steady as Yen Holds Firm, Oil Tops $100 
BSP Sees Philippine Inflation Easing, Keeps Policy Options Open 
Australia Inflation Beats Forecasts, Raising RBA Rate Hike Risk 
Australia GDP Beats Forecast, Boosting RBA Rate Hike Bets 
Gold Prices Rise as Yen Rally Weakens Dollar 
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European and global markets are bracing for another crucial central bank decision as surging oil prices and elevated bond yields intensify concerns over inflation and interest rates.
The European Central Bank is expected to raise interest rates on Thursday, kicking off a busy stretch for monetary policy that includes Federal Reserve and Bank of Japan meetings next week. Investors will closely watch ECB President Christine Lagarde for clues on the outlook for further rate hikes as policymakers confront renewed inflation risks.
Market anxiety has increased as the Middle East conflict, now more than six months old, escalates with a fresh wave of attacks on shipping. Brent crude futures climbed above $100 a barrel for the first time since July, raising concerns that higher energy costs could keep inflation elevated.
Long-term bond yields have also reached levels not seen since before the global financial crisis, creating additional pressure on equities and other risk assets. European stock futures indicated a subdued opening, while the euro held largely steady at $1.1637 ahead of the ECB decision.
Attention will also turn to U.S. inflation figures. August producer price index data are due Thursday, followed by consumer price inflation on Friday. The reports could influence whether the Federal Reserve raises rates at its September 15-16 meeting. Fed funds futures currently indicate roughly a 60% probability of a rate hike.
Meanwhile, the Japanese yen has strengthened despite rising oil prices. The currency traded around 153.39 per dollar and has gained approximately 4% this month as markets anticipate faster monetary tightening from the Bank of Japan.
BOJ board member Kazuyuki Masu recently said broader price pressures have pushed underlying inflation “very close” to the central bank’s 2% target, reinforcing expectations for additional rate increases.
Alongside the ECB meeting and U.S. PPI report, investors will monitor Germany’s August inflation data as markets assess whether persistent price pressures, rising energy costs and high bond yields will force major central banks to maintain tighter monetary policy.
