Just as China faces a testing time over its dramatic COVID-19 policy pivot, financial markets are on full alert ahead of interest rate decisions coming out this week from the world's top central banks.
European stock markets are set for a weaker start on Monday, dragged by declines in Asian stocks, with the spotlight on a series of central bank meetings even as expectations rise that euro zone inflation is peaking. It's a Super Thursday this week, with the ECB, Bank of England, and the Swiss and Norwegian central banks also expected to jack up borrowing costs. What markets are keen to find out is whether they are nearly done.
Whether inflation is responding to the most aggressive Fed hiking cycle since the 1980s will be evident in this week's U.S. consumer price index report.