Global markets react to US inflation and central bank policy signals

Global financial markets are reacting to recent US inflation data and central bank policy signals. In the United States, the Consumer Price Index (CPI) for August rose 0.4% monthly, with annual inflation at 3.4%. Core inflation, which excludes energy and food, rose 0.3% monthly, exceeding expectations. This has heightened market concerns regarding the Federal Reserve's upcoming meeting on September 15-16, as investors weigh the possibility of further interest rate hikes to curb persistent price pressures.

Despite these concerns, major stock indices showed resilience. Wall Street saw a rebound, with the Dow Jones rising over 500 points, while the S&P 500 and Nasdaq also posted gains. European markets, including the FTSE MIB in Italy and indices in Germany and France, closed the week in positive territory. However, the sentiment remains cautious due to the contrast between falling oil prices and the potential for tighter monetary policy.

In Europe, the European Central Bank (ECB) recently implemented a 25-basis-point rate hike, bringing the rate to 2.50%. Analysts are closely monitoring future moves as inflation remains a significant factor. Meanwhile, the Taiwan stock market experienced volatility following the US inflation report, though it managed to maintain key support levels after an initial decline.