The fall in US producer price index (PPI) triggered a fresh round of buying on Wall Street and the S&P 500 has set a new three month high.
Stock markets are enjoying a rally as traders have shrugged off concerns there might be an energy shortage in Europe.
Stocks markets are pushing higher this afternoon as traders believe the Federal Reserve might not be as hawkish as previously predicted.
The fall in government bond yields has paved the way for a rally in stocks. Lately there has been a strong inverse relationship between yields and equities and that is playing out today.
Worries about inflation are gathering pace as the US producer price index (PPI) rate jumped to 11.3%, close to its record high.
The jump in the US inflation rate triggered major volatility in the markets as traders now feel the Federal Reserve will be even more hawkish than previously expected.
Earlier today EUR/USD traded at parity, it was the first time the currency pair hit that level since 2002.
Stock markets are lower this afternoon as China has reintroduced restrictions to try and curb the spread of Covid-19.
Equity markets are higher following the well-received US non-farm payrolls report. The update showed that 372,000 jobs were added last month, and that comfortably topped the 250,000 consensus estimate.
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