After a long period of extremely low volatility, the markets received a reminder of how quickly this can change with the good news of global growth and inflation pressures having a negative impact on both equities and bond yields as markets digest the possibility of higher interest rates.
Having taken a beating over the previous two weeks, equities are showing signs of calm and stability and even managed to post a gain last week. Financial markets continued to pushed yields higher, again after the much-anticipated US inflation data was stronger than expected which increased the probability of more US rate hikes for 2018 and 2019.
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