Global Markets Brace for Volatility Amid Economic Uncertainty and Inflation Concerns

The US dollar rebounded last week after hawkish comments from the US Federal Reserve and still-elevated inflation raised doubts on whether the US central bank will pause at its next meeting in June. Global equity markets slipped on more evidence of weakness in the post-Covid recovery in China, worries regarding the US debt ceiling, and lingering US regional banking concerns. A spate of Fed speeches is scheduled through the coming week, including Fed Chair Jerome Powell on Friday. Key market focus in the coming week includes China industrial output and retail sales data, minutes of the recent Reserve Bank of Australia’s meeting, Germany ZEW sentiment index, UK jobs, and US industrial output and retail sales data.