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Inflation expectations are soaring -Breaking

by Mike Robinson

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Tommy Wilkes gives a glimpse at what lies ahead for the day.

As prices rise, expectations are rising. On Friday, the latest landmark was reached in the Euro zone. German prices expectations rose to an 8-1/2 year high as fears grow about the European Central Bank’s dovish monetary policy.

According to data from the UK, 48% thought that inflation would accelerate in the coming 12 months. The rise in breakeven rates in the U.S. was the highest since 2012.

Financial markets are taking this all with them, even though the risk of price increases that self-fulfill is worrying the global central banks. They look for ways to curb inflation but not stop economic growth.

The S&P clocked up a new record close on Thursday, while Asian stocks — given a boost by indebted developer Evergrande making a surprise interest payment — rallied on Friday.

The world stocks have risen 4.6% and are just 1% away from record highs. Investors shrugged off concerns of rising inflation and tighter monetary policy to cheer on another round of corporate earnings.

European stock markets were mixed at the open, and Wall Street futures closed slightly lower than their previous record high.

Investors will closely monitor flash purchasing managers index survey data October 2010 for the Euro zone, Britain, and the United States. This information is expected to be available later.

The oil price dropped while the 10-year U.S. Treasury yields soared to 1.7%, their highest levels since May.

French automaker is featured in company news Renault (PA) Despite predicting production losses of far greater magnitude than expected due to shortages in semiconductor chips around the world, PA maintained its outlook for profit. Remy Cointreau drinks maker forecasted an exceptional operating profit growth of 5% in the first quarter of 2021/2022’s fiscal year.

Markets should be more informed by Friday’s key developments

CPI for Japan

Flash PMIs available everywhere

GfK Consumer Confidence/UK Retail Sales

-Fed speakers:Fed chair Jerome Powell,  San Francisco President Mary Daly

-Emerging markets: Russia central bank meets

European earnings Pernod Ricard (PA)

American Express (NYSE:), Honeywell(NASDAQ:)

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