Markets again concerned about inflation
And just like that, we’re back to financial markets schizophrenic flirtation with inflation. Not enough meds have been ingested clearly because all the talk was of ebbing inflation fears after Friday’s mammoth Non-Farm Payrolls miss. Yet overnight, the inflation ghoul reappeared as US yields moved higher, and technology stocks were hammered as cyclical rotation once again moved to the Dow Jones.
Some mentions have been made that the Colonial Pipeline cyberattack could lead to a spike in fuel prices, pushing up, you guessed it, inflation. That is nonsense, of course. Only a prolonged shutdown would show up in the data, and parts of the system are already being bought back in line. To be sure, we have some inflationary hurdles this week, notably in the US, where official inflation is released tomorrow, followed by 10-year and 30-year auctions. However, if the JOLTs Job Openings for April come in much lower than the forecast 7.5 million
2:00PM Water Cooler 3/2/2021 | naked capitalism nakedcapitalism.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nakedcapitalism.com Daily Mail and Mail on Sunday newspapers.