Interest Rates on High Alert as Q4 Begins

The third quarter is coming to an end, and investors are bracing themselves for what's next. The US payrolls report on Friday will be a major event, with economists predicting a rise of 100,000 jobs and an unemployment rate of 4.2%.

Meanwhile, the Federal Reserve is expected to hike interest rates again in October, with futures pricing suggesting a roughly 50/50 chance. The PCE price index on Wednesday will provide clues about whether inflation is moving towards the Fed's 2% target.

The euro zone inflation data on Friday and Tokyo prices are also on tap, and will give markets a read on whether energy price surges have caused ripple effects across major economies. Global borrowing costs are at their highest since the 2007-08 financial crash, with 10-year Treasury yields above 5%.