U.S. nonfarm payrolls in August, reported last week, came in at more than three times the market forecast, reigniting concerns about a September rate hike. With U.S. CPI data and an ECB meeting due next week, global equity markets are focused on the actual inflation data and the direction of monetary policy.
Last week, U.S. nonfarm payrolls in August significantly exceeded the market forecast, highlighting the strength of the labor market. This has fueled broader expectations that the possibility of a September rate hike has strengthened again.
This week, the actual figures for U.S. inflation indicators, including CPI, will be released, while a European Central Bank (ECB) meeting is also scheduled. Ahead of these announcements, global equity markets face a period of heightened uncertainty.