Fear of inflation, but Turkey is likely to continue as a rate cut by Reuters

(Reuters) – A look at the day by Sujata Rao.

These fears of inflation will not go away.

European gas prices have started to rise and have risen by 60% so far in November, while data from Wednesday put the US housing sector full of labor and material shortages. And companies continue to warn of the higher costs that margins can cause.

All of this, in addition to data from last week’s inflation forecasts for the United States, Britain and Canada, among others.

Uncertainties about how this could affect economic growth and expectations ahead of interest rate hikes are reducing equity gains, holding world stocks up and leveling off for the week. Moreover, the demand for government bonds is alive and well after the fall in Treasury yields on Wednesday.

Concerned governments are looking at calm – China said it would pull oil out of reserves after the U.S. proposed a coordinated release of stocks by large oil-consuming nations.

The news is that oil prices have fallen by $ 1.

Emerging markets have had a tremendous time this year, as most have been forced to raise interest rates to calm inflation and maintain profit needs over developed markets. Government average borrowing costs have risen 160 basis points this year, according to a JPMorgan (NYSE 🙂 index.

On Thursday, he is likely to join the South African rate hike brigade; despite lowering inflation, it may find merit to call it early.

But there are exceptions. Economists expect Turkey to cut rates by 100 basis points to 15%, below five percentage points of inflation. The lira has lost 30% against the dollar this year – now at $ 11 per dollar, up from 6.9 in March.

Will central bank governor Sahap Kavcioglu hold on to President Tayyip Erdogan’s line and cut rates? Standing up to protect against further lira losses would make it the fourth https://www.reuters.com/world/middle-east/revolving-door-turkeys-last-four-central-bank-chiefs-2021- 10-08 governor last he lost his job for years. Lira Schedule, https://fingfx.thomsonreuters.com/gfx/mkt/zdvxonkjmpx/lira%20timeline.PNG

Key developments that should give markets more direction on Thursday:

-Japan’s new stimulus package will include a record spending of about $ 488 billion

-Carlyle says talks to take over with Metro Bank are over

-Thyssenkrupp profits will double in 2022, hydrogen IPO indicates

-German car license plates

-Fitness Speakers: Charles Evans President of Chicago

-Developing markets: Central banks meet in South Africa, Turkey, Indonesia, Philippines

-European profits: Royal Mail (LON :), National Network (LON :), ThyssenKrup

-US earnings: Macy’s Alibaba (NYSE :), Kohl’s