Fears of a return in inflation will accompany the recovery

The rally in US stocks was interrupted yesterday, mainly on inflation fears that have been strengthening significantly since Joe Biden unveiled his $1.9tn stimulus plan. The key question is whether the rise in inflation that should accompany the recovery is strong enough to push bond yields sharply higher, destabilize financial markets and trigger a U-turn in central banks’ policy, especially the Fed. Nobody has the answer today. So this question will remain the main focus of financial markets in the coming months and probably beyond. The EUR/USD pursues its rebound and is now trading around 1.2125.

Graph of the day

Share this news :

You might also read :

ES-power
July 30, 2021

EUAs posted slight daily gains

The European power spot prices were mixed yesterday, decreasing in France (-5.99€/MWh day-on-day) on expectations of weaker demand but sharply rising in Germany (+18.71€/MWh), Belgium…
ES-economy
June 28, 2022

Without conviction

US equity markets fell back yesterday as interest rates rose to above 3.2% for the US 10 year. Market participants appear unconvinced as we approach…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter
Thank you for subscribing to our newsletter​

We will get back in touch with you soon.

Don’t forget to follow us on twitter!

EnergyScan - Newsletter subscription

🏆 You like our solution ?

Vote for us at the 2024 Energy Risk Commodity Rankings, in the Research category!

Thanks in advance.

Don’t have an account yet? 

[booked-calendar]