Week In Review
Week Ahead
- Japan Q3 GDP
- EIA Short-Term Energy Outlook
- European Central Bank Meeting
Thought Of The Week
US inflation expectations rise amidst optimism
The alignment of several stars in recent weeks – Biden’s victory, positive vaccine results and better-than-expected corporate profits continued to reinforce the “Everything Rally”.
The MSCI All-Country World Index climbed another 12% in November to record its best month and equity funds saw their strongest three weeks stretch of inflow. This wave of market exuberance was largely led by beaten-up industries including airlines, banks and energy as investors eye faster economic recovery and higher inflation over the next several years.
The U.S 10-year breakeven rate also climbed to 1.87%, its highest level since May 2019. Nonetheless, there is a danger that this stimulus-soaked and vaccine-happy rally has become too oblivious to the immediate economic challenges and the longer-term damage caused by the pandemic....
