Stocks Slide With Inflation and Stagflation in Focus

Stock markets are in retreat this morning among more signs of stagflation. This morning, UK jobless claims came in worse than expected (50K vs street 10K), a sign of a weakening economy. Average earnings including bonus was also worse than expected (5.9% vs street 5.7%) a sign that inflation is not going away and may be worsening.

This news has European markets falling for a second straight day with the FTSE down 0.9%, the CAC down 1.1% and the Dax down 0.7%. Meanwhile, US index futures are down 0.2%-0.3%, essentially giving back yesterday’s US market gains. More inflation reports are on the way, including consumer prices for China and the US tomorrow morning, giving traders more to consider heading into Wednesday afternoon’s Fed interest rate decision, statement, member forecasts and press conference.

Action in metals and energy is mixed today, suggesting those markets are still searching for direction in the wake of recent retreats. Natural Gas is up 3.6%, Gold is up 0.1%, Silver is down 1.1%, Copper is down 1.2%, and US Crude Oil is down 0.5%.  

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