Market traders are increasingly pricing in a potential interest rate hike by the US Federal Reserve next week, driven by recent inflation data and economic uncertainty.
The likelihood of a rate increase has risen significantly, with analysts at Natixis suggesting that marginal improvements in the Consumer Price Index may not be sufficient to pause hikes.
Investors are now adjusting their portfolios, with banks favored for a 'hot' inflation print, while REITs and homebuilders are being watched for signs of a cooling economy.