Marketmind: Still too hot
A look at the day ahead from
The return of U.S. inflation to more bearable levels is not going to happen overnight so those who were hoping for a clear signal that price pressures had peaked got disappointed.
April's hot consumer price data did leave bets of aggressive Fed tightening broadly intact and with them the spectre that a hard landing for the world's top economy may become unavoidable.
The fall of the headline figure to below the 40-year peak did provide some comfort, helping world stocks, already flirting with bear market territory, regain some footing after an initial kneejerk plunge. But that bounce was short-lived.
The Nasdaq fell over 3%, logging its worst five-day drop since
The risk of a recession also reversed the spike in Treasury yields which now look set to fall further this morning while the only winner appears to be the dollar which has rocketed to a new 20-year peak. A
Meantime, finance ministers and central bank governors from
Oil too is down. Cryptocurrency markets are in meltdown mode with so-called stablecoin TerraUSD collapsing and Bitcoin falling below
Positive soundings from the earnings season in
U.S. CPI https://fingfx.thomsonreuters.com/gfx/mkt/zgpomlozmpd/Morning%20bid.PNG
(Reporting by