Are we going to get any calm returning to equity markets? There's a lot of unsettling concern about the combination of higher bond yields, geopolitical risk and the ongoing trade tensions.
If today’s inflation rise is due to currency, the momentum should fade. Instead, we think it is largely noise with inflation set to return to the 2% target early next year.
The catalyst for the biggest U.S. equity sell-off for six years is being blamed on a delayed realization that inflation pressures are rising perhaps more quickly than anticipated. As such, this appears to be more of a 'healthy' correction rather than the start of a broader re-evaluation for earnings.
The scale of nerves was underlined by a surge in the volatility index and the halting of trading on Tuesday in a handful of exchange-traded funds that allow investors to bet on market swings staying low.
New Fed chairman’s upbeat economic assessment pushes dollar higher
James Knightley, Chief International Economist at ING, notes that UK headline consumer price inflation has jumped from 2.5% to 2.7% in August and is t