Yen Surges as Japan Eyes Rate Hike: Market Reactions and Financial Jitters

The yen surged in Asian markets following a hotter-than-expected Tokyo CPI, leading to speculation of a rate hike by the Bank of Japan. Meanwhile, European markets await inflation data, and French bonds face uncertainties amid political tensions. December promises significant central bank policy discussions globally.

In an unexpected turn of events, the yen surged in Asian markets following hotter-than-expected Tokyo CPI figures. This development has fueled speculation about a potential rate hike by the Bank of Japan next month, marking a shift in investor sentiment since the last rate increase triggered market volatility.

Meanwhile, European markets braced for inflation data releases, with EUROSTOXX 50 futures slightly rising. Economists expect euro zone inflation to rise to 2.3%, but subdued German inflation casts doubt on these projections, hinting at a potential change in the European Central Bank's rate policy by December.

On the political front, French bonds faced widening spreads amid governmental stability concerns. The French government's concessions on electricity taxes failed to prevent a potential no-confidence vote. As a busy November concludes, December is set to be eventful, with pivotal central bank meetings and political developments on the horizon.

(With inputs from agencies.)