For decades, European defence budgets were treated as a discretionary line item, a peace dividend to be spent elsewhere. Russia's invasion of Ukraine broke that assumption. The ensuing years featuring a less predictable transatlantic security relationship and the growing importance of cyber, drones and space have only reinforced that break.

Jackson Hole will take centre stage, with Fed Chair Warsh and his global peers expected to shed light on the policy outlook amid elevated long-end yields and lingering trade and inflation uncertainty. Investor focus will then turn to US PCE inflation, the Fed’s preferred gauge so far, alongside income and spending data for further evidence on the resilience of the US consumer.

Global growth will take centre stage, with Friday’s flash PMIs providing a timely read on momentum across the US, Eurozone and UK, complemented by China’s July activity data.

The US inflation report will take centre stage consumer inflation remains far above the Fed’s target and household purchasing power is eroding gradually, an important political feature ahead of this year’s mid-term elections.

The US labour market will take centre stage, culminating in the July employment report on Friday with JOLTS and ADP data earlier in the week.

Earnings season will remain the main focus, with Microsoft, Meta, Apple and Amazon reporting Q2 results.

A decade ago, the idea of detecting cancer from a blood sample, mapping a tumour's genetic profile, or designing a personalised therapy with the help of artificial intelligence sounded futuristic. Today, these advances are moving into clinical practice.

Earnings will stay on top of the agenda, with several industrials and energy companies reporting.