Inflation and the expected interest rate hikes, the driving force behind markets in 2021 as the stimulus was piling into the markets for the prior 12 months. Inflation officially reached 5% during last month as the Fed will be under a significant amount of pressure to address the current inflationary risk as the 3rd consecutive month of inflationary data above 2%.
Precious metals rallied higher as the CPI data came out higher than expected, the dollar weakened against major currencies and we saw investors lean more to a risk on the environment as Nasdaq and S&P rallied higher while the Dow rally was short-lived before it closed near its open.
European Indices remained in a range as the Dax held its range post the ECB Monetary Policy Statements which was very dovish as interest rates and bond purchasing is to remain the same.
The Crypto market remains ranging as a lot of the interest in the alternative asset class has subdued following legislative issues it has come under pressure following China’s ban on Bitcoin.
Following yesterday’s economic drivers there is still Euro strength before the European open the Dollar still has some weakness alongside the Yen.
4:00pm - Prelim UoM Consumer Sentiment (USD)
- Prelim UoM Inflation Expectations (USD)