• Stock markets edge lower after US retail sales disappoint
  • Risk aversion reawakens the dollar ahead of Fed minutes today
  • RBNZ says rate hikes ‘delayed not derailed’, goes wild

Stocks bleed, but not much

It was a lively session across global markets. Wall Street came under pressure on Tuesday after US retail sales fell short of expectations, amplifying concerns that consumer spending may be rolling over and reinforcing the narrative that economic growth has already peaked.

Of course, the retreat was mild and there wasn’t any sense of panic selling, with the S&P 500 losing just 0.7%. It is quite impressive that US markets are still within touching distance from record highs, defying an imminent withdrawal of Fed liquidity as well as a worsening Delta outbreak in America and Asia, even with valuations being so stretched.

This resilience might boil down to expectations that the Fed will be infinitely cautious in reining back stimulus…

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