Central Banks and Energy Prices Set to Dominate Global Markets

The coming week in financial markets is expected to be dominated by central banks and rising energy prices. The U.S. Federal Reserve meeting on Wednesday is widely anticipated to hold rates steady, but uncertainty remains high due to recent inflation data. Meanwhile, oil prices have surged above $100 a barrel, driven by tensions in the Middle East.

The Houthi attacks on energy shipping chokepoints could further disrupt global supplies and drive up prices. European gas prices have reached their highest since March last week, adding to market uncertainty. The U.S. imposed new tariffs on goods from 60 trading partners, including the European Union and China, which will add to market volatility.

The Bank of Japan meeting on Friday is expected to deliver a hawkish message, with some policymakers advocating for faster rate hikes to combat rising inflation and energy costs. The Bank of England is also under scrutiny, with markets anticipating at least one rate increase this year despite signs of jobs market weakness.