Stocks suffer second day of steep declines

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Risky assets are back in “sell the news” mode, it seems, as a sea of ​​red engulfs equity markets on the final day of the week.

US CPI print drives stocks down

“Equities and investors are again very nervous about inflation. This was the case before today’s US CPI figure, thanks in large part to the ECB, but this afternoon really put the cat among the pigeons. The annual and monthly numbers are higher than last month, and no one seems to want to hang around and look at the basic numbers, which don’t paint quite the same picture. That puts the markets in nervous mode ahead of next week’s Fed meeting as inflation rises again, sparking renewed debate over whether Powell and co will need to step up their tightening efforts over the summer. ‘a break now seems very out of place.

Risky assets fall again

“The mid-May rebound had stalled firmly this week, yesterday’s ECB meeting pushed it lower, but it was today’s price action that really did. markets into risk-free mode. It’s back to buying dollars and selling almost everything else, and that certainly includes Europe, where debt risks are back in agenda just a day after Lagarde finished speaking.

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