Western sovereign bonds start giving fresh signs of stress [Video]
|The S&P 500 closed at a fresh record high yesterday, boosted by a 4% jump in Nike shares, now up 45% since April’s dip on the back of the US–Vietnam trade deal and relaxed chip design exports toward China. But the tariffs remain significantly high, and will likely boost inflation. The economic data is weakening but not enough to get the Fed to cut the rates when inflation expectations are rising, and the Western sovereign bonds start giving fresh signs of stress.
In summary, there are cracks beneath the record high equity prices. And this episode is detailing them!
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