Overview
- US employers added 162,000 jobs in August, a stronger‑than‑expected payroll print that lifted market odds of a Federal Reserve rate hike before year‑end.
- Renewed US–Iran strikes around the Strait of Hormuz have effectively closed the chokepoint to transit and drove Brent toward the mid‑$90s, adding an energy premium that raises inflation risk for oil‑importing countries.
- A broad global bond selloff pushed government yields to multi‑year highs, with the US 10‑year near levels last seen in late 2023, which reduces equity valuations and raises borrowing costs.
- Asian markets showed sector divergence as chip and AI‑linked names rallied while broader indices, including India’s Sensex and Nifty, surrendered gains as a heavy IPO calendar drained domestic liquidity.
- Investors are focused on this week’s US consumer‑price data and the Fed meeting on Sept. 16 for clues on whether higher oil and payrolls will force sustained monetary tightening.