Bassanese Bites: Relaxed & comfortable – May 31 2021
Global markets
Global equities managed to post positive returns last week – after two weekly declines – even in the face of a modestly higher than expected U.S. consumer price inflation result. Indeed, annual growth in the U.S. core private consumption expenditure deflator (PCED) came in at 3.1% in April, compared to the market estimate of 2.9% – but interestingly the U.S. bond market barely budged. This suggests either the ‘whisper number’ on the street was even higher and/or the market is already trying to look through the inflation results, comforting itself in the possibility that this may well represent the peak in annual U.S. consumer inflation for the year.
