Inflation Challenges Markets Despite Asset Gains

This week, global markets focused on US inflation data, which has become a key driver in reevaluating financial assets. Inflation levels remain above target, supported by strong economic growth fueled by a tight labor market, with monetary policy expected to stay restrictive. This has led to expectations of a prolonged period of high interest rates, as bond yields rise and stock markets—particularly technology stocks—react negatively to this trend. The most likely scenario involves a significant decline in inflation while the labor market remains stable, supporting a rebound in assets. However, if inflationary pressures persist, the scenario of maintaining high interest rates for a longer duration becomes more probable.

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