5 global events that could move markets this week

Global markets are heading into a crucial week as investors track monetary policy decisions from the U.S. Federal Reserve, Bank of England and Bank of Japan. Escalating tensions in the Middle East, rising oil prices, fresh U.S. tariffs and earnings from major technology companies are expected to shape market sentiment. (Source: Reuters)

Energy and trade risks dominate sentiment

Middle East tensions have pushed Brent crude above $100 a barrel for the first time since May, while European natural gas prices have climbed to their highest level since March. Investors are also monitoring the Strait of Hormuz and Bab el-Mandeb shipping routes, as fresh U.S. tariffs on imports from 60 trading partners have added another layer of uncertainty.

Fed Meeting & Big Tech Earnings in Spotlight

The U.S. Federal Reserve is widely expected to leave interest rates unchanged at its policy meeting. However, the recent surge in oil prices has revived concerns that inflation could remain elevated. Investors will also closely watch quarterly results from Apple, Microsoft and Amazon for updates on AI spending, corporate profitability and future growth.

BOJ Faces Pressure as Yen Weakens

The Bank of Japan's policy decision on Friday will be closely watched as the yen trades near its weakest level against the U.S. dollar in four decades. Markets are looking for signals on whether policymakers will raise interest rates more aggressively, while Tokyo's inflation data ahead of the meeting could provide additional clues on the policy outlook.

Policy, profits and euro zone data in focus

The Bank of England is expected to keep interest rates unchanged, though investors will scrutinize Governor Andrew Bailey's comments for clues on future policy amid rising inflation and a slowing labor market. Meanwhile, Europe enters its busiest earnings week of the season, with companies including LVMH, AstraZeneca, Shell, Airbus and UBS reporting results. Euro zone inflation and economic growth data will also be closely watched for signals on the European Central Bank's next move.