Oil prices and global bond yields are rising again, putting investors in front of some difficult choices. Sovereign yields are becoming increasingly attractive, but structurally higher inflation could push them even further. Meanwhile, the S&P 500 has become materially cheaper despite trading higher, as strong earnings growth has driven significant multiple compression and lifted the forward earnings yield to around 5.2%.
This week, US inflation and labour-market data will test increasingly hawkish Fed expectations, while European inflation releases will shape the outlook for the ECB. In corporate news, Micron earnings will provide another major test for the AI trade, where expectations are exceptionally high.
Three questions dominate the week ahead: Will inflation keep central banks hawkish? Can equities withstand higher yields? And can strong AI earnings continue to protect markets from the pressure of rising borrowing costs?
Watch the full episode to find out more!
0:55 Market update
1:46 SPX cheapens
4:02 Week Ahead
5:58 FX : EURUSD, GBPUSD near critical levels
7:23 Micron earnings due Wednesday
9:31 Three Questions into the Week Ahead
#Markets #SP500 #FederalReserve #Inflation #BondYields #Earnings #AI #Micron #Oil #ECB #Forex #Investing #Swissquote #MarketTalk
