On Thursday, the European Central Bank is widely expected to raise its key interest rates by 25 basis points for a second time this year, taking the deposit rate to 2.50%, as concerns over persistent inflation continue to mount.

The ECB's Governing Council is unlikely to disappoint current market expectations, having signalled the prospect of further tightening over the past six weeks.

At its 23 July meeting, the key deposit rate was left unchanged, with policymakers saying they were closely monitoring the "intensity and duration of the [energy] shock" stemming from the ongoing US-Iran conflict in the Middle East, particularly around the Strait of Hormuz. (LS – Continue Reading)

China’s consumer inflation accelerated for the first time since April and factory-gate prices grew faster than expected, as more expensive food and energy revive cost pressures.

The consumer-price index rose 0.8% in August from a year earlier, in line with forecasts and up from 0.5% in the previous month, according to data released by the National Bureau of Statistics on Wednesday. Producer inflation rebounded to 3.8% from 3.5% in July, exceeding the median forecast of 3.6%. (BBG – Continue Reading)

The US military said it destroyed five Iranian oil tankers on Tuesday in response to the latest attacks on its warships and Tehran hit back at American targets in Jordan, the latest burst of back-and-forth strikes that have lurched the sides back toward open hostilities in a more than 6-month-old war.

Following the American strikes, Iran launched missiles toward US targets in Jordan, Iranian state-run media said. Jordan’s military said its air defense systems intercepted 18 ballistic missiles launched toward its territory and two others fell in places where no one lives. It said it has no reports of casualties. Jordan is a staunch U.S. ally that hosts American forces, making the kingdom’s military bases a target of repeat Iranian strikes. US Central Command said it had no information to offer.

The latest strikes are part of a dual economic and military approach by President Donald Trump as he struggles to bring an end to the war. The Trump administration on Tuesday also imposed sanctions on additional elements of Iran’s aviation industry, targeting more than two dozen commercial and private airlines as well as foreign cargo service providers, in its new push to isolate Tehran from its remaining trading partners. (AP – Continue Reading)

The United States banned a broad swath of Canadian alcoholic beverages, motorcycles and dairy products from import on Tuesday, sharply escalating an already acrimonious trade spat.

The import bans, which go into effect on September 29 and were published on the White House's website, came after Canada's own retaliatory tariffs on US goods took effect after midnight on Tuesday.

Those Canadian levies themselves followed 50% tariffs that the United States imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed. The breakdown has widened a rift between the longtime allies, who have blamed each other for the failed talks, and spurred Canadian Prime Minister Mark Carney to urge a further shift away from Canada's biggest trading partner. (RTRS – Continue Reading)