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YIELD RADAR: June 2018
YIELD RADAR: June 2018

YIELD RADAR: June 2018

Global economic growth can be described as robust in recent months but fl attening in its momentum.
What is new is that the homogeneity between countries and regions is not as high
as it was a few months ago. Especially between Europe and the USA, meanwhile, we can
see clear differences. This picture is also confi rmed in the case of infl ation. In the US, actually
measured infl ation rates are rising. In addition, many leading indicators of infl ation point to
price pressures in the coming months. The danger of overheating of the economy is there. In
Europe, the picture for the leading indicators is much more relaxed.
The latest increase of the key lending rate by the Federal Reserve Bank to a new span of 1.75
to 2.00 percent was expected by the market participants. The European Central Bank expects
its key reference rate of zero percent will stay unchanged at least during the course of summer
2019.

Inflation worries weighing on stock exchanges
Inflation worries weighing on stock exchanges
(c) iStock

Inflation worries weighing on stock exchanges

In the past two days, the stock exchanges, spearheaded by the New York Stock Exchange, have shed the entire previous gains of 2018. Even last week, inflation worries had started to weigh on the markets. But the recent reaction was extraordinarily strong, with experts likening it to the excellent employment report in the US. We have asked Peter Szopo, our equity strategist, about the current market situation.