fxstreet.com 17 Feb, 2021 12:00 am

Inflation fears weigh

Inflation fears weigh
US futures are marginally lower ahead of the open on Wednesday, tracking similar moves in Europe after an uninspiring start to the week. We're seeing

The reflation trade that has been good for stock markets as it's driven by optimism around the recovery.But that will only continue to a point and if yields start rising at a rate considered too fast, sentiment will quickly change in stock markets.And further yield spikes could weigh on sentiment in the near-term and lead to losses in stock markets.US futures are marginally lower ahead of the open on Wednesday, tracking similar moves in Europe after an uninspiring start to the week.

Retail sales, industrial production, capacity utilization and other figures will also be released ahead of the open.This is naturally a negative development for gold which is once against testing lows from two weeks ago.

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