Stocks bounce, but there’s trouble ahead

After the nasty slip-up earlier this month, equities bounced back strongly last week. Yet the source of all the fuss – the rise in US bond yields and signs of inflation returning – hasn’t gone away.

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We've had our appetiser how much longer before the main course arrives?
(Image credit: 2018 Getty Images)

Was that it? After the nasty slip-up earlier this month, equities bounced back strongly last week. The FTSE 100 had its best week in two years, gaining almost 3%, and the US's S&P 500 index bounced by 4.3%, its best outing in five years. Yet the development that caused all of the fuss the rise in US bond yields amid signs of inflation returning hasn't gone away, as Richard Barley points out in The Wall Street Journal. Indeed, the US ten-year Treasury yield, which is the benchmark for world debt markets, has edged up to a four-year high above 2.9%.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.