Sujata Rao gives a glimpse at what lies ahead.

Charles Evans (from Chicago) and Raphael Bostic (from Atlanta), are two of the U.S. central banks’ doves. They suggested that rate increases could occur in mid-2022, which shows how the U.S. central bank’s transitory inflation story may have become a little thin.

On Thursday, data revealed that weekly unemployment claims are now only a fraction of the levels recorded in March 2020 just prior to the pandemic. The 20-month low in jobless benefits is also reflected in the unemployment rolls.

However, this didn’t stop the equity juggernaut. It saw the Nasdaq close at records peaks. Tech and retail led the way, as both are highly sensitive to increased borrowing costs. Wall Street futures are heading north as well as European bourses where French and German shares reached record heights.

The retail sector in Britain saw a break from a 5-month slump and saw sales rise 0.8% to October. That’s a little more than was forecast. These data, which were released the week after robust inflation figures and employment statistics, may confirm expectations of an increase in the Bank of England’s December rate.

However, equity gains were not felt in Asia. Tokyo rose 0.5% due to the possibility of an additional $490 billion stimulus package, but Hong Kong fell 10% because of losses in Chinese ecommerce giants. Alibaba (NYSE:), whose quarterly earnings revealed the effects of regulatory crackdowns.

What are other noteworthy movers? It is expected to have its worst week for six months, dropping 20% from recent records. It is happening despite cryptocurrency miners raising capital and looking at public listings.

The Turkish lira has begun to heal from Thursday’s 11% drop triggered by a 100-basis point rate reduction. The lira has seen some improvement of 2%, but it is now down close to 50% for the year. Jobless claims, https://graphics.reuters.com/USA-STOCKS/egpbkaebgvq/joblessclaims.png

Markets should be more informed by Friday’s key developments

Japan announces record stimulus package to buck global tapering trends

Unilever and CVC sign $5 Bln agreement for tea business. Ryanair drops London listing due to costs

Gfk Consumer Confidence/Retail Sales in the UK

German PPI (+3.8% m/m; +18.4% year-over-year in October

-Ghana central bank meets