Upbeat global business activity, particularly in the services sectors, climbed to its highest in a year, challenging the view that a recession is imminent and bolstering the case for central banks to continue to raise interest rates to tame inflation.

Markets this week are eagerly awaiting Australia’s quarterly inflation report on Wednesday with concerns the Reserve Bank could lift the 3.6 per cent cash rate on May 2 if prices continue to rise at an uncomfortably fast pace.