U.S. inflation pressures eased after producer prices fell 0.1% in August, missing expectations for a 0.3% increase. The softer print adds to calls for the Federal Reserve to act, as Donald Trump intensifies pressure on Fed Chair Jerome Powell to cut interest rates. All eyes are now on today’s CPI release, which could be pivotal for policy expectations.
In Europe, the ECB meets today and is widely expected to keep rates unchanged. Meanwhile, Fitch may downgrade France’s AA- credit rating on Friday, according to Natixis, as the country’s new prime minister struggles to contain ballooning debt.
Asian equities extended their rally. Taiwan’s benchmark surged to a record 24,800, while Japan closed at fresh highs, helped by a 10% jump in SoftBank. In China, the tech rally continues, with authorities also considering measures to help local governments manage $1 trillion in debt.
On the corporate front, Klarna jumped 15% after raising $1.4 billion in its IPO, underscoring strong investor demand for the Swedish buy-now-pay-later lender.