Tensions Rise as Markets Eye German Inflation and US Jobs Data
Markets are bracing for key data releases this week, starting with Germany's flash inflation print on Tuesday. The headline HICP is expected to rise to 3.1% year-over-year from 2.8% previously, driven by increasing energy prices. Meanwhile, the euro area will also release its August inflation figures.
Asia saw some mixed signals, with China's private RatingDog manufacturing PMI coming in at 49.8 in August, ahead of the expected 49.6. However, non-manufacturing PMI remained steady at 49.0. Japan's final S&P Global manufacturing PMI for July is also due out.
The week's main event will be Friday's US jobs report, with nonfarm payrolls forecast to rise by 65,000 and unemployment holding steady at 4.1%. The euro area inflation figures on Tuesday and central bank decisions from the Bank of Canada and Reserve Bank of New Zealand on Wednesday are also closely watched.
Oil prices surged after a US strike on Iran's Larak Island, pushing Brent above $90 per barrel for the first time in several years. Geopolitical tensions continue to drive energy markets higher, with implied volatility rising sharply.