Stagflation and Why Nikkei 225 Trails U.S. Stocks

View in your browser Is Economy Headed for Stagflation?; Nikkei 225 Trails Soaring U.S. Stocks By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group A Return to Stagflation of the 1970s? Inflation in the 1970s peaked above 10%, averaged 7.8% from 1976 to 1979. Current inflation rate of about 5% lags the trend in the … Read More

Rising Expectations for Fed Rate Hike

View in your browser Rising Expectations for Rate Hikes By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group Factors Fueling Fed Rate Hike Expectations Inflation topping 5%, supply chain issues lift rate hike expectations. Even transitory inflation could take 18-24 months to subside. New Fed appointments are likely before rate hikes. Does Fed … Read More

U.S.-Chinese Equities Diverge, Drivers of the Korean Won

U.S.-Chinese Equities Diverge; Factors Driving the Korean Won Erik Norland, Senior Economist CME Group Stock Market Slumps in China, Rallies in U.S. Chinese stocks tumble 20% even as U.S. equities rally to record highs. High corporate debt, widening credit spreads weigh on Chinese stocks. China’s growth slowed in Q3, energy crunch raising production costs. China might … Read More

Economic Twists and Turns; Yuan Faces Headwinds

Uncertainty amid Economic Twists and Turns; Yuan Faces Headwinds By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group Economic Twists and Turns as Changes Abound Rebuilding of economy could take time, accompanied by investor uncertainty. Record number of job openings, high level of workers quitting jobs. Shift in consumer demand overwhelms already stretched … Read More

Commodities Face Cross-Currents and Energy Crunch to Raise Farming Costs

Commodities Face Cross-Currents and Energy Crunch to Hit Ag Sector By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group Commodities Face Various Market Factors Oil prices top $80 per barrel as demand for power generation steps up. Gold caught between high inflation and impending end to Fed asset purchases, possible rate hikes. Copper … Read More