The recent steep rise in the US 5-year breakeven inflation rate to 2.61%, a two-year high coupled with the unexpected contraction seen in the S&P Global flash US Services PMI for February has increased the odds of a stagflation environment.
An increasingly less dovish monetary policy stance is likely to be adopted by the US Federal Reserve, in turn, tighten liquidity conditions that may trigger a medium-term negative feedback loop into the US stock market.
Bearish technical elements in terms of
24-02-2025 10:49 GMT
by Kelvin Wong
