Global Tensions Spark Inflation Fears Ahead of Key CPI Data

The global economy is on edge as multiple flash points around the world threaten to upend markets. Brent crude prices have risen for six consecutive sessions, reaching levels that signal pressure on central banks to contain energy-driven inflation.

Houthi attacks in the Red Sea and North Korean ballistic missile tests have heightened tensions globally. Meanwhile, Taiwan has protested China's planned naval drills off its east coast.

The Reserve Bank of Australia delivered a hawkish stance by holding onto policy rates on Tuesday, while markets speculate that the Bank of Japan could tighten again as soon as next month.

Today's US consumer price index data will be closely watched for signs of inflation. The Reuters poll forecasts a 0.1% increase in prices last month, with annual CPI inflation slowing to 3.4% from 3.5% a month earlier.