Stock markets in Europe and the US are in positive territory after a few days of losses. In recent sessions, traders have been preoccupied by fears of higher inflation, but today equities have rebounded. The gains made today are small when compared with the ground lost in the past week.
This time last month, the narrative was very different, because bond yields were relatively low, and inflation wasn’t a major concern. Now there is chatter of persistently high inflation, concerns about lower growth in China and the UK, as well as the possibility of the Fed tapering in early 2022. To an extent, the FTSE 100 has weathered the sell-off reasonably well since BP and Royal Dutch Shell have rallied because of the booming oil market.