Stagflation: Key Catalyst Extending Loss in Global Equities

Inflation is working round the clock tumbling global markets and traders up at night. Asian stocks in the red with Korea Composite Stock Price Index leading loss by 1.55%, Hang Seng by 0.70% and Nikkei 0.93%. The SET kicked off the day with loss down by 0.36%.

U.S. equity indices closed the first day of the week with loss, S&P 500 and Nasdaq down by 3.69% and 0.72% respectively.

Couple of catalyst are working against the market with elevated inflation stroked by energy crisis leading in trader’s mind. Chinese private sector crackdown is again under spotlight as Beijing started regulatory inspection in the country’s $54 trillion financial sectors.

The move aligns with Beijing’s tough stance on corruption in the financial sectors and focus is on securitizing ties of financial firms with private firms.

Oil keeps rallying spurring stagflation concerns with oil futures WTI crossed $80 a barrel for the first time in October with Brent continuing its last week’s upward streak trading over $80 level. Inflation sparked by energy crisis rooted Euporie and China.

Traders are on close watch for consumer price index (CPI) data and retail sales in the upcoming days which would aid in forming consensus on the tapering timeline after disappointing payroll numbers.

The dollar on a uptick to 94.329 dominating its G10 pairs. Treasury remains steady.