Global markets are awaiting US CPI data and interest rate decisions in Poland and the Czech Republic, with expectations that rates will remain on hold. Cooling US jobs data and sliding oil prices following the reopening of the Strait of Hormuz have led to an unwinding of Federal Reserve rate-hike bets. Consequently, the Fed is now expected to maintain current interest rates until summer 2027 due to slowing inflation.
US stock markets struggle to sustain gains as persistent inflation risks overshadow investor optimism at the start of a pivotal trading week.
Read the full storyING analysis suggests falling energy costs and cooling labor markets may keep interest rates steady through summer 2027 as inflationary pressures peak.
The reopening of the Strait of Hormuz and sliding oil prices pushed inflation into negative territory, fueling market bets on Fed rate cuts.
Global markets enter a quiet period ahead of US July CPI data, with central banks in Poland and the Czech Republic expected to maintain current interest rate levels.