Investors were spooked Wednesday following official US data showing annual consumer price inflation hit a 30-year high, which could force the Federal Reserve to hike interest rates more quickly to contain prices.
But economists say sentiment should recover once global supply snarls are resolved, and consumers are unlikely to pull back on spending. “Yet investors don’t seem that bothered,” Wilson said. “Ultimately, the market remains fairly comfortable with fundamentals” and with central banks keeping rates low, “equities remain the only game in town.”
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