Federal Reserve Signals Hawkish Inflation Stance

A Federal Reserve official noted that strong consumer demand may be contributing to persistent U.S. inflation. The official stated there is "no ambiguity" in how the central bank would react to such pressures, reinforcing expectations of a firm monetary policy response to control prices.

Economic and Political Shifts in Emerging Markets

In Brazil, pre-election polling shows a narrow lead for the opposition, while economists have lowered the country's end-2026 interest rate forecast. Meanwhile, China's central bank pledged to continue opening its financial markets, and India reported that its infrastructure output grew by 4.8% in August.

European Energy Woes and Geopolitical Tensions

Geopolitical strains persist as the Kremlin responded to new U.S. sanctions, stating they are unhelpful for bilateral relations. In Europe, Germany is launching gas tenders to contend with low storage levels, and the EU has proposed energy and water efficiency labels for data centres to address consumption.