Analysis: Concerns about inflation dominate market sentiment, and investors are focused on central bank interest rate decisions

According to Jinshi reports, Capital.com analyst Daniela Hathorn stated in a report that investors are closely watching the upcoming inflation data to assess the potential direction of future central bank interest rate decisions.

She pointed out that market expectations for a rate hike by the Federal Reserve before the end of the year have risen significantly over the past week, so the inflation data could reinforce or challenge this repricing expectation. LSEG data shows that investors have fully priced in a 25 basis point rate hike by the Federal Reserve by the end of 2026.