Fed decision, inflation, oil may drive markets in holiday-shortened week

• Indian stock markets declined last week, with the Sensex falling 1,733.67 points and the Nifty dropping 499.6 points. • Analysts identify volatile Brent crude prices and tensions in West Asia as primary threats that could drive up inflation and depress the rupee.

• German companies increased their investments in China during the first half of the year compared to the same period in 2025. • A study by the German Economic Institute, using Bundesbank data, found that firms invested €5.6 billion ($6.5 billion) more in China.

• The US Federal Reserve, the UK, and Japan will announce monetary policy decisions on three successive days starting this Wednesday. • These decisions follow key data releases, including a record-low 4.7% unemployment rate in Lima for July.

• Dividend Talk and Analytics Insight identified European blue chips and specific Asian stocks as top income allocations for 2026. • DBS Group Holdings is highlighted for an estimated dividend yield between 5.4% and 6.1%, supported by its digital banking scale and Southeast Asian deposit base.

• US stock market investors are preparing for a critical week centered on the Federal Reserve's upcoming decision regarding interest rates. • Market participants are monitoring retail sales data and inflation signals to determine if policymakers will keep rates unchanged or implement another increase.

• The U.S. Federal Reserve and central banks from Japan, England, and Taiwan are meeting this week to determine global monetary policy. • Market odds for a Federal Reserve rate hike are currently near 90%, with three officials having already dissented at the July meeting to favor higher rates.

• Central banks in the U.S., UK, and Japan will announce interest rate decisions on successive days starting this Wednesday. • These three decisions will follow the release of the August jobs report for Lima, where the unemployment rate reached a record low of 4.7 percent in July.

• Citi analysts forecast that the EUR/USD currency pair could retest the 1.17 level following the upcoming Federal Reserve interest rate decision. • The prediction focuses on the potential price movement of the Euro against the U.S. Dollar based on central bank policy shifts.

• Indian equity markets declined on Friday, causing the Nifty and Sensex indices to close lower for the fifth consecutive week. • Investors reacted to rising crude oil prices and increasing US bond yields during the trading session.

• Indian Prime Minister Narendra Modi and Chinese President Xi Jinping pledged on Saturday to strengthen business and transport links to revive diplomatic ties. • The leaders focused on resolving structural trade imbalances, supply chain issues, and the need for predictable market access.

• Chinese President Xi Jinping and Indian Prime Minister Narendra Modi held a bilateral meeting during the 18th Brics summit in New Delhi. • President Xi stated that India and China can learn from one another to achieve shared development.