The Majors
It was a mixed end to the week for the European majors on Friday, with a jump in yields pulling the majors into the red.
The CAC40 rose by 0.21% to make it five in a row, while the DAX30 and the EuroStoxx600 ending the day down by 0.46% and by 0.26% respectively.
Economic data from the Eurozone and the U.S failed to support the majors in spite of better-than-expected numbers.
A pickup in U.S Treasury yields through the European session pinned the majors back at the end of the week.
The Stats
It was a relatively quiet day on the economic calendar on Friday. Key stats included inflation figures from Germany and Spain and Eurozone industrial production numbers.
A fresh leg up in the US bond yields underpinned the USD and prompted fresh selling around gold. A modest pullback in the US equity futures extended some
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Both the COVID relief package and the infrastructure stimulus will not result in high inflation.
There s no reason to fear overheating of the economy.
Dan Alpert is an adjunct professor at Cornell Law School and a founding managing partner of the New York investment bank Westwood Capital LLC.
This is an opinion column. The thoughts expressed are those of the author.
This is the second of my two columns addressing concerns surrounding the Biden administration s plans to greatly increase the federal government s role in the US economy in the form of large scale fiscal spending, both for COVID-related relief and additional economic stimulus. Yesterday s column dealt with the problem of potential economic leakage, while today s will focus on inflation. Enjoy!