Five things to watch in markets in the week ahead By Investing.com

• Markets are focusing on critical inflation data this week, specifically the July CPI report on Wednesday at 8:30 am and Thursday's PPI report. • Investors are analyzing these price pressure trends to evaluate the policy trajectory of Fed Chair Kevin Warsh.

• Analysts maintain a broadly positive outlook for the global economy in the second half of 2026, despite noting a significant accumulation of risks. • Taiwan, Malaysia, and Singapore are expected to outperform consensus expectations, and India's outlook is improving, while caution remains for Indonesia and Thailand.

• Indian equities remain attractive for long-term investment, driven by a recovery in corporate earnings, increased private capital expenditure, and new trade deals. • The Nifty index valuations are currently aligned with their 10-year average, suggesting a stable entry point for investors.

• South Korea has emerged as a critical market barometer for global AI stock trading due to the high dependency of Korean memory chip makers on U.S. tech infrastructure spending. • Data from Rayliant Global Advisors shows the 60-day correlation between the KOSPI and the Nasdaq 100 has risen to approximately 0.50, the highest level since 2021.

• Asian markets remained cautious but generally positive despite hardline rhetoric from Iran, with the Nikkei leading gains at +2%. • Australia's ASX lagged as the financial sector dropped 2%, driven by a 4.3% fall in Westpac shares following a 20% plunge in mortgage loan applications.

• European stocks remained steady on Monday, with the pan-European STOXX 600 holding its ground at 660.12 points. • Market stability follows a strong previous week where the benchmark climbed 1.7% to a record high, driven by strong corporate earnings and expectations of lower U.S. borrowing costs.

• Harry Halewood, product specialist for the Making Europe Great Again UCITS ETF, has identified three European stocks suited for a turbulent global market. • A primary recommendation is Ørsted A/S, Denmark's largest energy company and a global leader in the construction and operation of wind farms.

• The BSE Sensex fell 455.59 points (0.58%) to close at 78,499.17 on Friday, August 7, 2026, ending a two-session winning streak. • The decline was primarily driven by selling pressure in the financial sector, specifically affecting non-banking financial companies and private-sector banks.

• India is expanding its strategic presence in the Asean defense market, beginning with the sale of BrahMos missiles to the Philippines. • Since 2022, India has maintained a comprehensive strategic partnership with Asean as a bloc and formal partnerships with six member states, including Vietnam and Singapore.

• Asian markets are showing positive momentum, with Japan's Nikkei 225 rising over 1% to near 66,300 and South Korea's Kospi gaining nearly 1.7% driven by chipmakers. • Brent crude prices have climbed for three straight sessions to approximately $84.4 per barrel due to geopolitical instability in the Gulf.

• A new report released on August 10 indicates that Indian equities remain attractive for long-term investment despite recent market volatility. • The positive outlook is driven by a recovery in corporate earnings, an increase in private capital expenditure, and the potential for new trade deals.