Markets Brace for Key Releases Amid Geopolitical Tensions

The markets are bracing for a slew of key economic releases this week, including Germany's August flash inflation print and the US jobs report.

In Europe, economists expect headline HICP to rise to 3.1% year-over-year in Germany, driven by energy price increases. The underlying momentum will also be closely watched as it gives a more nuanced picture of the economy.

Meanwhile, in Asia, China's private RatingDog manufacturing PMI rose to 49.8 in August, beating expectations, while Japan's final S&P Global manufacturing PMI is expected to confirm 55.1 versus 54.5 in July.

The US jobs report on Friday will be the focal point of the week, with nonfarm payrolls forecast at +65k and unemployment steady at 4.1%. The euro area inflation release on Tuesday will also be closely watched, alongside central bank decisions from the Bank of Canada and Reserve Bank of New Zealand.

Geopolitical tensions have pushed oil prices higher after the US struck two rocket launchers on Iran's Larak Island and Iran fired missiles at Jordan. Brent crude has moved above $90 per barrel as a result.