Key facts
- Global markets face a volatile week with AI-linked equity selloffs and escalating Middle East tensions.
- Investors are watching U.S. jobs data and India's central bank meeting.
- The euro zone economy grew 0.4% in the second quarter of 2026.
- Euro zone growth was driven by AI investment and government spending.
- Cleveland Fed President Beth Hammack dissented, voting for a rate hike.
- Hammack cited inflation above 2% as a reason for tighter monetary policy.
- Europe is experiencing extreme weather impacts.
Global financial markets are anticipating a turbulent week, marked by significant selloffs in equities tied to artificial intelligence, heightened tensions in the Middle East, and the release of crucial U.S. jobs data. Investors are also closely monitoring the Reserve Bank of India's upcoming meeting and the economic impacts of extreme weather events across Europe.