September risks are stacking up hard and fast for world markets
As traders return from August breaks, markets face a host of risks, including concerns over high government debt and persistent inflation. The ongoing conflict in Iran has driven oil and gas prices, affecting energy stocks and big energy consumers. Inflation has impacted government bonds, and the Federal Reserve and Bank of Japan meetings may create volatility.
Fed Chair Kevin Warsh's hawkish remarks could spur rate hikes, and Japan's Bank of Japan is expected to raise rates in September. Anthropic, a tech firm, may list publicly and raise up to $100 billion, potentially risking the AI trade. The French government's budget submission and Germany's bond market challenges due to Chancellor Merz's popularity issues are also on the radar.
Britain's new Prime Minister Burnham's policies and the upcoming U.S. midterm elections may also influence market sentiment. Rising gasoline prices due to the Iran war have caused concern among American consumers.
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