Inflation fears

It’s paradoxical but the poor US jobs report has brought inflationary fears back to the forefront of market concerns. The Nasdaq plunged by 2.6% yesterday on worries about the consequences of higher interest rates on expensive stocks’ valuation. Market measures of inflation expectations or surveys all reflect these fears, but the bond market stays calm, persuaded that the Fed will keep on purchasing bonds until temporary tensions disappear. The US 10y remains around or most often below 1.6%. The USD has not regained the lost ground, around 1.2150 vs the euro. Chinese inflation figures released overnight were not particularly worrying, but the key event of the week will be the release of the April US inflation data tomorrow.

inflation rate china
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

January 31, 2022

Growing risk premium at the TTF beyond WIN22

European gas curve prices showed significant gains on maturities beyond WIN22 on Friday, still supported by political statements from the US over a blocking of…
July 29, 2021

America outperforms

Crude prices continued to rise yesterday, to reach 75 $/b for the ICE Brent August contract on the backend of drawing US petroleum inventories and supportive macro…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!