Markets Braced for Inflation Data and ECB Rate Decision

The coming week will be marked by several key economic events that could impact markets worldwide. On Friday, the US will release its August consumer price index (CPI) data, which is expected to show a 3.4% year-over-year increase in prices, matching July's pace. This could provide insight into how the Federal Reserve will calibrate interest rates later this month.

The European Central Bank (ECB) will also hold its policy meeting on Thursday, where it is widely anticipated to raise borrowing costs by a quarter-point in response to the energy price shock caused by the war in Iran. The conflict has sent gas prices soaring, threatening to keep inflation elevated around the world.

On the earnings front, cloud computing giant Oracle and design tools maker Adobe will report their quarterly results after US markets close on Thursday. Oracle's performance is expected to be closely watched, as the company plans to spend heavily and raise debt to build out its artificial intelligence infrastructure.