As the year comes to an end, central banks around the world are expected to raise interest rates in response to rising inflation. The Federal Reserve, Bank of England, and European Central Bank are all expected to announce rate hikes this week. In the US, Tuesday's inflation data and Wednesday's Fed meeting will likely set the tone for markets for the rest of the year and beyond. Stock markets will be closely watching these events for indications of how high interest rates may ultimately rise in 2023.

EQUITY

Concerns about a potential recession weighed on investor sentiment, sending US stock futures lower. This comes after a week in which major benchmark averages hit three-week lows. Investors are now anticipating key consumer price index data on Tuesday as well as the Federal Reserve's interest rate decision and statement on Wednesday, where a widely anticipated 50 basis point rate hike is expected.

OIL

Crude prices fell 11% in the worst week in nine months, owing to fears of a recession and a price cap on Russian oil. The market has shifted from a supply-driven environment, in which Brent reached a 14-year high of nearly $140 per barrel in March, to one that is concerned about the global economy's performance in 2023.

GOLD

Gold futures ended the week virtually unchanged, trading at $1,797.46. The spot price of gold was $1,797.13, just under the $1,800 mark. The November Consumer Price Index (CPI) report due out on Tuesday will determine whether gold prices can finish the year above $1,800 per ounce.

CURRENCY

US dollar increased while most Asian currencies declined as investors awaited Federal Reserve signals on US monetary policy and a reading on consumer inflation in the US. Among their regional counterparts, the South Korean Won and Malaysian ringgit experienced the greatest losses. The demand for risky assets was reduced, and the majority of regional units were burdened by worries about a possible recession in 2023.