Mixed Markets Weigh Inflation Gains Against Oil Price Volatility

Global markets delivered mixed returns last week as investors weighed encouraging inflation developments against higher oil prices. The US economy's July Consumer Price Index (CPI) rose 0.1% month on month and 3.4% year on year, matching expectations.

The moderation in inflation reduced expectations for near-term monetary policy tightening, with core PPI increasing 0.2% in July versus a revised 0.4% in June.

European equities declined as investors considered solid economic data releases and geopolitical risks linked to the US-Iran conflict and the Strait of Hormuz.

The volatility of oil markets intensified inflation concerns, with WTI crude rising above $82 per barrel by Friday afternoon, up from $78 at the end of the previous week.