Equity investors defy gravity, but rally is not sustainable! | MarketTalk: What’s up today? | Swissquote

Show notes

The Eurozone’s flash CPI estimate looked as ugly as it smelled beforehand. Inflation in the Eurozone is estimated to have barely eased to 8.5% from 8.6% printed a month earlier, while core inflation advanced to a record of 5.6%, from 5.3% printed previously.
The latest CPI update confirmed the European Central Bank (ECB) hawks’ aggressive positioning for further rate hikes and pushed the European yields further up yesterday, but despite higher yields across the board, the Stoxx 600 closed Thursday’s session 0.50% higher.
Across the Atlantic Ocean, fresh jobs data came to fan the inflation worries yesterday in the US.
US yields advanced but the S&P500 could avoid a further selloff, though it briefly stepped below the most-watched 200-DMA.
But for both the European and US stock markets, the rising yields call for downside correction.
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