G5 Rates'n'Equities

The market has shifted from an “eventual easing” framework toward a stagflation / inflation-credibility framework. The key point is that hikes are being added not because growth is strong, but because inflation expectations are becoming harder for central banks to ignore. That is a much more difficult mix for risk assets.

Below we dive into the US, EU, UK, AU and CA curves and the initial implications to each of their domestic equity market.