Inflationary concerns a focus for markets this week - Nomura

Analysts at Nomura explained that inflationary concerns have been a focus of markets this week.

Key Quotes:

"May eurozone inflation disappointed expectations, with core CPI inflation coming in at 0.9% y-o-y in May from 1.2% in April."

"US core PCE fell to 1.5% in April compared with 1.6% a month earlier."

"It was as high as 1.8% at the start of the year. These prints will probably not stop the Fed from hiking later this month, but they do bring into question another hike later this year. The ECB may also waver on dropping forward guidance at its meeting next week, and we have been highlighting risks that market expectations may be too elevated. It’s probably too early to call an end to inflation, but were the trend to continue, the yen could end up being the biggest winner as other previously hawkish central banks converge to the BOJ stance of no-action."