Fears of stagflation stump global shares

Investors all over are caught in fears of stagflation which had caused inertia in global shares on Monday as bet that major banks tighten monetary policy encouraged bond yields and propped up the dollar to a near three-year peak versus the Japanese Yen.

Brent oil prices went on their bullish run to reach a stop which was only seen last 2018, with gains within the energy sector compelling worries on inflation. Regarding the inevitability of steep energy prices and shortages, Mr. Jeffrey Halley, OANDA’s resident analyst had this to say:

“Higher energy prices, shortages will inevitably make their way through global value chains in the form of rising prices and potentially shortages of industrial and consumer goods,”

He even went on record to say that the transitory nature of inflation claimed by multiple central banks are sounding, “…more and more hollow.”

The fears on stagflation are perpetual in Europe despite surging commodity prices supporting oil and mining shares.

The euro STOXX 50 is recorded to have traded lower by 0.3%.

Nasdaq futures was also down by 0.6% and S&P 500 futures by 0.3%.

The MSCI world equity index, however traded higher by 0.1%.

In China the sentiment had been partially aided by some cities’ planned supportive measures to help out the overly-challenged property market.

Meanwhile, China’s blue-chip CSI300 index climbed by 0.1%, as MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.6%.

This week sees the U.S. earnings season and is to bring disruptions in supply and a rise in costs, according to trusted sources such as JPMorgan (Wednesday), BofA, Morgan Stanley and Citigroup (Thursday), and Goldman (Friday).