Weekly Market Insights – 7 September
The latest data point to resilient US activity, with a stronger-than-expected labour market and continued business expansion, while easing wage growth offers some relief on inflation pressures. In Europe, however, a sharp acceleration in headline inflation and expectations of further policy tightening weighed on the outlook, alongside weaker retail activity. Elsewhere, China’s uneven recovery and continued weakness in Japanese household demand highlighted divergent growth dynamics, while geopolitical tensions escalated in the Middle East.
Markets reflected renewed inflation and rate concerns, with global equities edging lower and European shares particularly pressured by higher bond yields and political uncertainty. Sovereign yields rose across major markets, while oil prices surged on fears of supply disruption following the escalation in the Middle East. The US dollar weakened, the yen strengthened on expectations of a Bank of Japan hike, and cryptocurrencies continued to advance.
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Charts of The Week
