While inflation remains top of mind for investors worldwide, confidence in the vaccination drive and global recovery, combined with the expectation of relaxed monetary policy, have helped offset inflation concerns.
In the US, economic recovery has strengthened, and a record number of companies have issued positive guidance for the second quarter. The market had slipped back when inflation jumped and the Federal Reserve brought forward interest rate hike planning, but stabilised as Chair Jerome Powell pledged to take a measured approach to tightening. Because interest rates remain low, equity markets keep pushing higher. Despite inflation fears and the prospect for tighter incremental monetary policy, the markets are still settling back on an expectation of an environment that is going to involve...
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