Central Banks and Inflation Outlook

Corporate finance chiefs in the U.S. have raised their inflation outlook and cited high interest rates as a primary business concern, according to a Federal Reserve survey. In the UK, Bank of America is now forecasting two additional Bank of England rate hikes, pointing to rising energy prices as a key driver for inflation.

China Provides Market Liquidity

China's central bank announced plans to inject significant daily liquidity, totaling around $149 billion, into the banking system. This move is intended to ensure sufficient cash flow and maintain stability ahead of the upcoming Golden Week national holidays.

Geopolitical and Technological Risks

Market focus remains on diplomatic developments, including ongoing talks related to the Middle East and a potential summit between the U.S. and China. Separately, leaders in the artificial intelligence industry are set to brief the United Nations amid warnings about the technology's potential risks, adding a layer of long-term uncertainty for global markets.