Post date: 25/10/2021 13:49 Inflation fears were further stoked by a massive upward surprise in quarterly inflation out of New Zealand last week. Sovereign bonds worldwide continue to sell-off, but as yet risk sentiment and, in particular, stock prices are proving resilient, as investors bet that corporations are well-placed to pass costs along and benefit…
Post date: 18/10/2021 10:49 One of the key correlations beginning to establish itself in the post-pandemic world seems to be the negative one between US inflation and the dollar. Yet another strong CPI report showed headline inflation above 5% for the fifth consecutive month. Yields did not move much as a response, but the US…
Post date: 11/10/2021 12:04 Last week provided strong validation for our view that inflationary pressures will be here for longer than G10 central banks expect. Oil prices, and the energy complex in general, rose strongly for the week, as did sovereign bond yields worldwide, driven higher by rising inflation expectations. For now, risk assets are…
Post date: 04/10/2021 11:00 Last week’s theme in markets continues to be aligned with our views and forecasts: burgeoning inflationary pressures worldwide and the possibility that central bankers, particularly in the developed world, may be already behind the curve in tightening policy. This was particularly evident across Eastern Europe, where hawkish surprises in central bank…
