In the coming week, markets will remain focused on the US–Iran standoff, with particular attention on any progress toward reopening the Strait of Hormuz and de-escalating the conflict in the Middle East. Government bond markets will also stay in the spotlight after the recent sharp rise in sovereign yields.
In the United States, investors will closely examine the FOMC minutes, the ISM Services PMI, and the preliminary University of Michigan Consumer Sentiment index for further insight into the economic outlook and the Federal Reserve’s policy trajectory.
Key data releases elsewhere will include German factory orders and trade figures, Eurozone producer price inflation, Japan’s consumer confidence and machine tool orders, Australia’s consumer confidence, and Canada’s employment and trade data. Inflation reports from Mexico and Brazil will also be followed carefully.
In monetary policy, the Reserve Bank of India is set to announce its latest decision. In addition, the upcoming OPEC meeting and political developments around Brazil’s presidential election will remain important drivers for global markets.
