{
  "id": 6146476,
  "title": "Stocks dented by inflation risk from rising oil, dicey geopolitics",
  "url": "https://urgent.news/2026/09/07/stocks-dented-by-inflation-risk-from-rising-oil-dicey-geopolitics-6146476",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-07T13:43:04.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/09/07/stocks-dented-by-inflation-risk-from-rising-oil-dicey-geopolitics-2"
  },
  "original_language": "en",
  "account": "European stocks experienced a slight decline of approximately 0.1% on Monday due to concerns over rising oil prices, geopolitical tensions, and political uncertainty within Europe. The Middle East conflict escalated with Iran announcing a restricted zone near the Strait of Hormuz, following US military actions against Iranian tankers and missile strikes on US Navy ships. Brent crude futures surged by 0.6% to $97 a barrel, reaching their highest level in seven weeks. Diesel prices, which power transportation, shipping, farming, and manufacturing, hit record highs last week and are around 90% higher than pre-war levels.\n\nInflation worries have driven investors to focus on upcoming US economic data, with the European Central Bank (ECB) and Bank of Japan (BOJ) considering interest rate hikes. The ECB is projected to raise rates to 2.5% on Thursday, with a 75% chance of another increase to 3.0% by December. The BOJ is expected to raise rates by 0.25% during its meeting on September 18, with a 60% probability of further rate increases by December.\n\nBruce Kasman, JPMorgan's global head of economics, noted that central bank interventions have supported asset prices and the credit cycle, but they are now actively adjusting policies. Federal Reserve officials priced a 58% chance of a rate hike during their September 16 meeting, while a 70% probability of a rate move by October was also indicated. As the euro strengthened on the day, trading around $1.1625, analysts cautioned that political friction could hinder its upward trajectory.\n\nIn Germany, the Alternative for Germany (AfD) party gained traction in state elections, potentially challenging the euro's stability. Meanwhile, France's far-right leader Marine Le Pen, who previously advocated for abandoning the euro, might win the presidential election's first round. These political shifts could lead to a rightward trend in Europe's largest economies, a development that could impact currency markets and explain the euro's recent decline. The euro has fallen by 1.1% this year, making it the weakest major currency against the US dollar compared to a modest 0.7% gain for the Japanese yen and a 0.4% rise for the pound. The dollar retreated against the yen, falling to 154.6 as robust buying fueled its seven-month high, driven by expectations of BOJ rate hikes and potential official interventions.",
  "summary": "With food and fuel prices rising everywhere, central banks are more likely than not to raise interest rates, making this week's reading of US consumer prices a key focus for investors.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}