14th June 2021 Morning Report

In the week ahead investors will be focussing on the Federal Reserve’s monetary policy meeting next week as a "Goldilocks" market environment that has helped lift stocks to record highs and tamed a bond selloff is faced by rising inflation.

Stocks now stand at fresh records, with the S&P 500 gain 13% this year and nearly 90% 2020’s March low. U.S. government bonds have also risen after their first-quarter selloff, with the benchmark 10-year Treasury yield at 1.46%, markets are choosing to follow The Federal Reserve’s view that rising inflation is transitory and that the economy is not close to overheating with employment 7.6 million jobs its February 2020 peak. 

However, some investors worry that markets have grown too complacent on inflation and other risks that could derail the current rally such as potentially higher taxes. Some of the biggest banks led by Morgan Stanley, have been warning in recent months that the market is primed for a sharp pullback.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

January 22nd Morning Report
January 20th Morning Report
January 17th Morning Report
January 15th Morning Report
January 14th Morning Report
January 13th Morning Report
January 10th Morning Report
January 9th Morning Report
January 8th Morning Report
January 6th Morning Report