While the effects of heatwaves and droughts begin to be felt in everything from harvests to holidays, financial markets are gaining confidence that the era of high interest rates and inflation may not be as catastrophic as some had feared. Here’s what to expect this week. The big hike. The Federal Reserve and European Central Bank are both expected to raise rates by 25 basis points this week amid signs the worst inflation crisis in decades is easing. Traders will focus on any signals that...