Equities gain support as bond selloff wanes
Fear of Fed, ECB moves dissipates as attention turns to inflation
Soft inflation numbers out of China suggest the country will not be the driver of global reflation in the near future, but stocks are faring well to start the week as the taper tantrum bond selloff has eased.
Wall Street appears set to do little to start the trading day with futures up S&P 500 and Nasdaq up 0.04% and 0.25, respectively, while the Dow is down 0.6%.
“Chinese inflation numbers were slightly softer than expected, again a warning that the country is not going to resume its traditional role as a global reflator in the near future. On the other hand, stocks are generally doing well, enjoying the tailwinds of Friday’s US payrolls numbers, in another sign that fear of a tighter Fed is probably softer in practice. Ultimately, a strong US labour market can only be good news for global demand and that should continue to anchor risk,” the Financial Times was quoted by Geoff Yu as saying.