Global markets are turning toward diplomacy after a turbulent week of central-bank tightening, with world leaders gathering in New York for the United Nations General Assembly. The main bilateral meeting is scheduled for Thursday between US President Donald Trump and Chinese President Xi Jinping in Washington, preceded by talks between Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng on trade relations, AI concerns and geopolitics. Military attacks in Riyadh and Moscow added to market uncertainty, while oil prices eased on hopes of restored Saudi flows and stronger September shipments. Brent crude nevertheless remained above $100 per barrel, and reports of refined-fuel shortages were emerging at US retailers. Investors were also assessing the effects of the Bank of Japan's rate increase, possible Japanese intervention in currency markets and the Federal Reserve's next steps. Markets fully price one additional Fed hike by year-end, with a move as soon as next month seen as roughly a 50-50 possibility. Two-year Treasury yields have risen as much as 36 basis points over the past two weeks. In Europe, the Bank of England is expected to raise rates by year-end, while Germany's governing CDU faces further poor state-election results and France's borrowing premium over Germany has reached its highest level since 2012. French officials are seeking to reduce the budget deficit from 5.4% of output this year to 5% next year through €54 billion in spending cuts, despite political risks ahead of next year's presidential election.