Arkéa AM flags oil shock lifting inflation risk as bond yields climb toward 5%
SPY•Oil shock lifts inflation and rates risk
Arkéa Asset Management flagged a renewed inflation shock as Middle East shipping risks pushed Brent above USD 100 to around USD 107.
Rising energy costs tightened global rates conditions; US 10-year yields neared 4.96%, with the curve steepening on long-end inflation risk.
Markets reprice tighter policy and higher-for-longer rates
Markets repriced Fed tightening; odds of a 25 bp hike at the Sep. 16 meeting rose above 70% as CPI held at 3.4% y/y.
The ECB lifted the deposit rate to 2.5% while projecting 2026 inflation at 3%, reinforcing expectations of higher-for-longer rates.
Risk appetite weakened; S&P 500 slid 0.58% in a down session, Euro Stoxx 50 fell, with energy shares holding up better.
