September risks are stacking up hard and fast for world markets

Traders return from August breaks to face numerous market risks, such as high government debt, persistent inflation, and the ongoing Iran conflict. The situation escalated when the U.S. Federal Reserve and Bank of Japan convened in the same week, possibly escalating volatility. Federal Reserve Chair Kevin Warsh's comments at the September 16 meeting and his upcoming Jackson Hole Symposium speech are crucial, as markets anticipate a 40% chance of a rate hike.

The Fed's communication style and actions have caused confusion, and recent bond market interventions further complicate the situation. Japan's Bank of Japan is also expected to raise interest rates on September 18. Meanwhile, Anthropic, an AI startup, is set to go public and could raise up to $100 billion, potentially creating more volatility in the AI sector.

France faces a budget battle to keep deficits under control ahead of the 2027 presidential election, which might favor the far-right. Chancellor Friedrich Merz's popularity and potential political blunders may also impact Germany's bonds. Finally, the British Prime Minister Andy Burnham's policies and the upcoming October budget will be closely watched, as well as the Labour Party Conference in September.