BlackRock Says Equities Rally Has Further to Run

The video discusses the current state of global markets, focusing on the divergence between Treasury yields and other market indicators. It highlights the fading inflation part of the reflation trade and the lack of domestic inflation in Europe and Japan, with the US leading due to a tight labor market. The discussion covers the impact of US inflation data, hedonic adjustments, and the challenges faced by central banks in justifying stimulus withdrawal. The video concludes with insights into equity markets and yield expectations.

What has been the main news affecting global growth momentum recently?

• Rising commodity prices

• Fading inflation effects

• Increased central bank pressure

• Dramatic threats to growth

What is the current state of the equity markets according to the transcript?

• They are experiencing a dramatic decline

• They are stagnant with no movement

• They are in an unloved rally with potential for further growth

• They are under enormous pressure from central banks

What has been the most interesting economic development in the US recently?

• A tight labor market with expected Phillips Curve effects

• A significant rise in domestic inflation

• Dramatic threats to economic growth

• Unexpected US inflation print

What is the current inflation trend in Europe and Japan?

• Inflation driven by commodity prices

• High domestic inflation

• Inflation driven by labor market changes

• No domestic inflation

What challenge do central banks face if inflation continues to disappoint?

• Justifying the withdrawal of stimulus

• Addressing dramatic threats to growth

• Managing high inflation rates

• Increasing interest rates