Good morning. Markets restore calm with all eyes now on US inflation data this week. Bonds are back as a hedge. French growth may get a lift from the Olympics. Here’s what people are talking about.
A semblance of calm returned to the markets after a rough ride last week. Stocks climbed for a second session in Asia while European equity futures are in the green. Investors are shifting their focus to key US data this week, with Wednesday’s CPI print set to test the markets. Inflation probably picked up modestly in July, but not enough to derail the Federal Reserve from a widely anticipated interest-rate cut next month. Governor Michelle Bowman said she still sees upside risks for inflation and continued strength in the labor market, signaling she may not be ready to support a rate decrease in September.