Growth concerns outweigh inflation fears

The stock markets are back down this morning despite a rebound in the US markets at the end of the week, notably based on hopes for a drug against Covid. The Merk laboratory claims that its anti-covid pill can halve the risk of hospitalisation for patients suffering from the virus.

With Chinese markets closed until Thursday, speculation about the resolution of the Evergrande case is weighing on other markets. Mixed US consumer spending figures (rebound in August but a sharp downward revision in July) are also causing concern, especially as negotiations on the Biden plans and the debt ceiling stall in Congress. The US 10-year yield is back to 1.47%, almost 10bp below the level reached last Tuesday.

The economic calendar is light today. The main event of the week will be the US job report on Friday. The EUR/USD exchange rate seems to be stabilizing around 1.16.