Markets still struggle between optimism and fear of inflation: what happens?

Markets still struggle between optimism and fear of inflation: what happens?
Markets still struggle between optimism and fear of inflation: what happens?

Markets today: Asia mixed, with trades that in any case reached three-month highs.

The global stocks they are looking for new catalysts as they hover at record levels. Concerns remain that recovery from the pandemic will fuel theinflation and it will prompt central banks to reduce monetary support sooner than expected.

In this climate, i markets they still struggle between optimism and prudence: what happens?

Markets: Asia fluctuates, from the USA a new boost of optimism

What happens in the markets today? Japanese equities outperformed and Australian equities were supported by solid economic data.

Hong Kong and China have slipped. US stock futures remained flat after the S&P 500 closed slightly lower.

To give a boost of positivity were the data on manufacturing production in the United States, which exceeded estimates. In fact, the numbers of SMEs have also jumped in Europe, where inflation has hit 2%.

However, supply shortages and labor constraints also emerged, which could hold back US momentum.

At about 8.00 am in Italy, the Japanese Nikkei trades at + 0.46%, while the Chinese Shenzhen Shanghai indices fall, respectively -1.11% and -0.73%.

Meanwhile, in the city of Guangzhou there has been a return to talk of infections and restrictive measures.

Beijing also launched the third child policy to deal with a population decline alarming for the nation. However, the measure was not received with great and shared favor by the population.

The Kospi of South Korea and Taiwan also decreased.

Oil rose to a peak of more than two years, with OPEC + providing a positive assessment of demand. The returns of the US Treasuries 10-year benchmarks have increased.

New US data are expected

Markets appear to be waiting for Friday, when the US will release data onoccupation. From there will come a clearer signal of the true extent of US growth. With clear signs for the Fed.

Lauren Goodwin, portfolio strategist at New York Life Investments, commented:

“Investors would see a surge in payroll growth as a sign that the Fed is more likely to move. “

Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy, as theUS economy advances while millions of people are unemployed.

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