Global Markets Trade Mixed Amid Inflation Concerns, Rising Oil Prices

Global markets are experiencing a mixed trend at the start of the week due to a decline in global risk appetite amid inflation concerns. The US consumer price index (CPI) rose 0.4% on a monthly basis and 3.4% year-on-year in August, while core inflation defied estimates at 0.3% month-on-month.

Market analysts are closely watching the Fed's interest rate decision this week, with the probability of a rate hike rising to 87%. The strong employment numbers, rising inflation estimates, and Fed Chair Kevin Warsh's emphasis on price stability have contributed to these expectations.

Rising oil prices continue to drive up bond yields and dampen risk appetite. November-delivery Brent crude oil is trading up 2.6% at $107.3 a barrel, following the closure of Saudi Arabia's East-West Crude Oil Pipeline due to attacks launched from Iraq.