Global Markets Prepare for Busy Week Amid Rising Inflation Concerns

The upcoming week is expected to be eventful for traders, with several key events scheduled. The first major release will be the U.S. Nonfarm jobs data from August, which will provide insight into whether the labor market is softening or if last month's weak data was a one-off.

According to Reuters, employment is expected to have climbed by 45,000 jobs in August, after falling by an unexpected 23,000 in July. The weak July report had previously calmed market worries about near-term interest rate hikes, but Fed funds futures still suggest better-than-even odds of a rate increase before the year's end.

Another area of focus will be the unfolding consequences of U.S. Treasury Secretary Scott Bessent's bond intervention. Recent days have seen talk of 'dollar debasement' gather pace as investors price in worries about a $40-trillion debt pile and policy uncertainty, with gold surging 13% in August and Bitcoin moving back above $80,000.

The European Central Bank (ECB) will also be watching closely as the Eurozone August inflation is forecast to hit 3.3%, its highest in nearly three years, driven by elevated energy costs.