This week, key inflation data from the U.S. and Australia will put the brakes on a global stock market rally.
In Australia, the S&P/ASX 200 index is set to open slightly lower after the S&P 500 ended its first weekly loss since September.
With bond yields climbing past 4.2% on the 10-year U.S. note, traders worry that interest rate cuts could be delayed.
Perpetual’s Matthew Sherwood says U.S. stocks have been looking pricey, with valuations outpacing actual economic growth.
Expectations of higher budget deficits, especially if Trump returns to office, could also push bond yields even higher.
Analysts suggest another stock rally may be on hold until after the U.S. election resolves.
Market momentum has stalled, and central bank policies may soon face additional pressure.
It’s a volatile week for investors as inflation data arrives.
