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Here’s a breakdown of the four topics Michał Jóźwiak will be covering in today's Market Live at 13:30, including what's happening, why it matters and what investors should watch next.

1. Macroeconomics & Monetary Policy

Global financial markets are closely watching inflation, economic growth and central bank decisions, as uncertainty surrounding the direction of interest rates continues to influence investor sentiment. In the UK, inflation remains above the Bank of England's 2% target, with investors awaiting the latest inflation figures to assess whether interest rates could remain higher for longer. Meanwhile, the US Federal Reserve faces a similar challenge, balancing the need to control inflation against signs of slowing economic growth. 

2. Bond Markets

Government bond markets are experiencing heightened volatility as investors reassess inflation expectations, interest rate policies and concerns surrounding government borrowing. In Europe, French government bonds have come under pressure amid political uncertainty and concerns about the country's finances, widening the yield gap between French and German bonds. In the UK, gilt yields remain in focus ahead of the Autumn Budget on 28 October, with investors closely monitoring government spending and borrowing plans. 

3. Oil Prices & Geopolitical Tensions

Oil prices have become a major focus for global markets, with Brent crude trading around $111 per barrel amid escalating geopolitical tensions and concerns over supply disruptions in the Middle East. Developments around the Strait of Hormuz, a crucial route for global oil shipments, have raised fears of tighter energy supplies and further price increases. Higher oil prices can have significant implications for the global economy, increasing transportation and production costs while adding to inflationary pressures. 

4. Corporate Earnings Season

The third-quarter earnings season is gathering momentum, with investors looking to corporate results for clues about the health of the global economy and the outlook for stock markets. Particular attention is on the US technology sector following recent volatility in AI-related stocks and growing concerns about the enormous sums companies are investing in artificial intelligence infrastructure. Major names such as Tesla, Meta and Netflix are among the companies reporting this week, with investors closely examining revenue growth, profitability, forward guidance and AI-related spending. 

Overall Market Outlook

The common theme connecting all four topics is the relationship between inflation, interest rates, borrowing costs and corporate profitability. Rising oil prices could fuel inflation, potentially encouraging central banks to maintain tighter monetary policies for longer. This could keep government bond yields elevated, increase borrowing costs and put additional pressure on company valuations.