Sumary of Marketmind: Peak inflation, seriously?:
- News that inflation came off the boil in the United States last month was a win for those in the “inflation is transitory” camp and markets cheered the news too.
- Not only was relief in equity and bond markets short-lived but there are plenty of other signs that the inflation debate is far from over.
- Take data out this morning in Europe showing British inflation hit a more than nine-year high last month after the biggest monthly jump in the annual rate in at least 24 years.
- China’s factory and retail sectors faltered last month with output and sales growth hitting one-year lows as fresh coronavirus outbreaks and supply disruptions took a toll.
- Key developments that should provide more direction to markets on Wednesday:- Apple’s new iPhone 13 touts faster 5G, sharper cameras to spur trade-ins- Japan’s machinery orders rebound in sign of capex recoveryStory continues- Euro zone industrial output, employment, wages- ECB Bond Market contact group annual online conference.