Global markets brace for central bank rate decisions

Global stocks fell this week as Middle East tensions revived fears of higher inflation.

The risk of renewed conflict and high shipping costs pushed Brent crude up 6.5% to $116.90 a barrel.

At the same time, high borrowing costs raised doubts about whether costly AI projects will earn enough to justify their spending.

Those concerns weighed on technology shares, and global stock markets lost more than $1 trillion in value.

Investors will now watch for interest-rate decisions from major central banks, including the US Federal Reserve, as well as US economic data and results from Amazon, Microsoft and Alphabet.

Markets expect the Fed to leave its policy rate unchanged, but the decision could shape expectations for borrowing costs and company investment.