The pandemic has led to far greater cooperation between governments and central banks. Governments can borrow and spend, in the knowledge that they won’t put pressure on the interest rates because central banks will stop that from happening. This has resulted in a powerful stimulant to the global economy.

US markets came off record highs as core inflation surprised on the upside. The Nasdaq was particularly hard hit. 

This week should bring further confirmation of the global rebound in economic activity, as well as more insight into the US Federal Reserve’s claims of ‘transitory’ inflation pressures.