Markets fall again as inflation worries rattle investors – business live

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Rolling coverage of the latest economic and financial news

7.49am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Inflation worries continue to grip the markets today, after US consumer prices jumped much more sharply than expected in April amid supply shortages and rising demand as lockdowns ease.

Related: Markets fall as US consumer prices see sharpest monthly climb since 2008

European Opening Calls:#FTSE 6949 -0.80%#DAX 15047 -0.68%#CAC 6234 -0.73%#AEX 687 -1.10%#MIB 24271 -0.74%#IBEX 8953 -0.61%#OMX 2182 -0.53%#STOXX 3912 -0.89%#IGOpeningCall

Don’t Be Fooled by April’s Inflation Jump. It’s Being Driven by Reopening Quirks.https://t.co/3dVrRdZ38q

<– always worth digging into the data on levels and the attribution tables pic.twitter.com/6pzsVCVl7H

It’s dangerous to read too much into one number but the broad strength gives us confidence that this is not just a transitory story. Another buzz word for us has been how this year will be “complicated” for markets especially once reopening happens. This release personifies that thought process.

You may get dull periods but this year is going to be a big battle between the bullishness of mass reopening/stimulus on one hand and the inflationary consequences on the other. Expect regular pockets of vol. I still lean heavily on the inflationary camp but the reality is that the battle is still in the early stages and non-inflationists will still be able to use the transitory argument for several more months yet.

This is the best chart I’ve seen that clearly explains what’s going on with inflation.

Yes, April saw the fastest inflation since Sept. 2008
But that’s b/c prices were compared to last April.

Chart via @andrewvandam pic.twitter.com/cuLI23N7aU

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

Related: Elon Musk says Tesla will no longer accept bitcoin due to fossil fuel use

pic.twitter.com/vG01cHRg7W

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