Markets Soar Ahead of Key US Inflation Data Amid Geopolitical Tensions

Markets are on high alert as they await key US inflation data, which could signal a potential Federal Reserve rate hike. In anticipation of this news, oil and gold prices have climbed to their highest closing levels since July 31. The price of Brent crude rose 0.62% to $89.46 per barrel, while spot gold increased by 0.77% to $4,400.44 an ounce.

The yen weakened against the dollar after Japan and the US intervened in currency markets for the first time. This intervention has put pressure on shorter-dated Japanese government bonds, with the yield on the five-year bond reaching a record high of 2.12%.

Geopolitical tensions remain high as North Korea launched a ballistic missile off its east coast, just days before joint military exercises by Seoul and Washington. The US and Yemen's Iran-aligned Houthis have also reported separate attacks on shipping.