Economic & inflation concerns return; Rallye fizzles

📰 Global equities are unable to extend yesterday's gains as concerns return about accelerating inflation, a global economic slowdown, and further interest rate hikes by the Federal Reserve further accelerating the economic downturn.

New inflation data from the United Kingdom (at a forty-year high of 9.1%) and South Africa (at a five-year high of 6.5%) showed that central bank actions appear to be having little immediate impact on consumer price pressures. Inflation data for the United Kingdom show a widening of inflation, particularly in food and energy prices. The UK, as well as most other European countries, is in the midst of a growing cost-of-living crisis that will have a major impact on consumer spending.

Stocks in Asia also posted renewed losses on concerns about a new round of COVID restrictions in China. 

Globally, optimism is fading that policymakers can achieve a soft landing while charting a course of aggressive monetary tightening to tame inflation. Fed Chairman Jerome Powell is expected to reiterate his resolve when he addresses lawmakers later today (14:30 GMT) – which could put renewed pressure on Wall Street. Concerns about an economic slowdown also spread to commodity prices: Oil prices lost most of their gains yesterday and metal prices continued their downward trend. 

While many analysts are already advising investors to get back into battered stocks, I foresee further medium-term losses before we perhaps see a year-end rally later this year. For now, however, markets will continue to oscillate between dip buying and recession fears.

The USD is rising again due to the Fed's tight monetary policy and safe haven demand. 

Boeing CEO Dave Calhoun warned that supply chain disruptions are likely to continue until at least the end of next year. I expect a number of warnings from companies related to higher energy prices, continued supply chain disruptions, expectations of falling consumer spending and rising borrowing costs.


🇺🇸 US Markets ↘️
Cyclical Stocks ↕️/↘️
Tech/Growth Stocks ↘️
Financial Stocks ➡️
Energy Stocks ↘️

💱 Forex Markets 
CAD, GBP ➡️/↘️

⚒ Commodity Markets ↘️
Oil prices ↘️
Gas prices ➡️/↘️
Metal prices ↘️
Precious Metals ➡️

⚡️Crypto Market ↘️

(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)

Yours, Robert 📈❌📉