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-gas
October 28, 2021

Prices down on hopes of higher Russian supply

European gas prices weakened yesterday, pressured by more comfortable spot fundamentals (above-normal temperatures, higher LNG supply). Moreover, on the pipeline supply side, Norwegian flows rebounded…
ES-economy
January 7, 2021

Trump presidency ends in chaos

What was feared just after the presidential election actually happened yesterday: Trump supporters invaded the Capitol to prevent Joe Biden’s victory from being certified by…
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

Don’t have an account yet? 

[booked-calendar]