Markets Stagnate Amid Stubborn Inflation
As investors return from their summer holidays, they're looking for new opportunities. But according to Michael Browne, Global Investment Strategist at Franklin Templeton Institute, not much has changed.
The ongoing Russia-Ukraine war, US midterm elections, and Trump administration's tariff campaign continue to impact global markets. The price of oil remains volatile, influenced by news from the Gulf region.
US economic data shows improvement, with positive Purchasing Managers' Index (PMI) numbers. However, inflation is proving stubborn, particularly core inflation, which has reinforced expectations for interest rate hikes in September from the European Central Bank (ECB).
The market still believes inflation is transitory, pricing in no more than two rate rises from major central banks by next year.