Finance

Financial markets are positioning heavily for a potential quarter-percentage-point interest rate increase at the conclusion of the central bank's upcoming two-day policy session. Rate hike probabilities jumped significantly over the past week as sticky underlying inflation data forced a hawkish shift in expectations.

Global energy markets experienced heightened volatility following fresh Houthi pipeline attacks in Saudi Arabia and the subsequent postponement of diplomatic talks between Iran and Gulf Arab states. The threat of broader supply disruptions pushed Brent crude prices above $108 a barrel, introducing further inflationary anxiety into the broader economy.

Precious metals continued their downward multi-week trajectory as a stronger-than-expected pick up in underlying U.S. wholesale prices fueled tightening concerns. Spot gold dropped below $4,300 per ounce, losing some of its non-yielding appeal as surging energy costs reinforced expectations for higher terminal interest rates.