Markets Retreat Amid Iran Diplomatic Stalemate and Rising Costs

Global markets retreated on Monday despite positive industrial production data from several countries. The US's equivocation on a peace deal for Iran led to a loss of momentum in diplomatic efforts, and financial markets downgraded their prospects.

The release of the August Dallas Fed factory survey showed that costs are rising faster than prices, which could drive up inflation. Federal Reserve Governor Lisa Cook warned that future productivity gains from AI may not be enough to offset near-term price pressures.

China's industrial profits rose 4.2% in August, but growth is slowing down. Singapore's industrial production surged 15.4%, driven by a 28% increase in electronics products. India's industrial production grew 8.0% in August from the previous year, exceeding market expectations.

The Reserve Bank of Australia (RBA) is expected to raise its interest rate by 25 basis points to 4.6%. Financial markets have priced in a 76% chance of this hike. The RBA's monetary policy review will be closely watched for clues on the future direction of interest rates.

The Global Cities Index ranked New York as the top city, followed by London and Paris. Sydney fell from 7th to 13th place, while Melbourne dropped from 6th to 16th. Auckland and Wellington ranked 60th and 75th, respectively.