US Inflation expectations shrug off oil price advances, vaccine hopes
|US inflation expectations, as indicated by the 10-year breakeven inflation rate figures of the Federal Reserve Bank of St. Louis, remain sluggish around 1.75% during early Wednesday.
In doing so, the risk barometer fails to cheer the recent strength in oil prices as well as calls that Janet Yellen’s role as US Treasury Secretary will propel the yields. Further, hopes that the covid vaccine will soon out also fail to please the market bulls.
The reason could be spotted from the Fed’s cautious optimism as well as fears of the coronavirus (COVID-19), as the global count crosses 60 million.
Also weighing the market sentiment could be the chatters concerning US-China trade relations and the American government sanction on Russian and Chinese companies. Additionally, China’s warning, indirectly coming from the state-run Global Times (GT), to US President-elect Joe Biden over Taiwan offered an extra burden on the market players.
Against this backdrop, the Thanksgiving Day holiday restricts the market mood and causes the traders to await fresh clues as equities wobble around a multi-month high.
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