Global markets start the week balancing political turbulence in Europe against sticky inflation risks in the U.S. A key confidence vote in France could trigger yet another government collapse, stoking fears of capital flight from euro assets. Meanwhile, U.S. inflation data (PPI and CPI) is in focus, with tariffs expected to push producer prices higher. This mix of fragile politics abroad and policy uncertainty at home is driving volatility across equities, currencies, and commodities.
- U.S. inflation risk: Tariffs likely to push PPI higher, with CPI to follow.
- French politics: Confidence vote for PM Bayrou could trigger fresh instability.
- Sector divergence: U.S. leisure and construction strong, mining and government weak.
- Commodities split: Gold and silver supported by political and inflation risk, but volatility remains high.