Asian Stocks Surge to Record Highs as Wall Street Rally Offsets Oil Price Concerns 
New Zealand Economy Faces Short-Term Pressure but Recovery Remains on Track 
Asian Markets Mixed as Oil Prices Rise Amid Middle East Tensions and Ceasefire Uncertainty 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Dollar Gains as Middle East Tensions and Rising Oil Prices Support Safe-Haven Demand 
ECB Warns of Rising Inflation Risks Amid Iran War Energy Shock 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
U.S.-Iran Tensions Escalate as Strait of Hormuz Crisis Disrupts Global Oil Markets 
Bank of Japan Faces Rate Uncertainty Amid Middle East Oil Shock 
Wall Street Hits Record High as Tech Stocks Surge Amid U.S.-Iran Developments 
Foreign Investors Drive Surge in Japanese Stocks Amid AI Rally and Improved Risk Sentiment 
Inflation expectations are soaring across the developed world. After the United Kingdom opted out of the European Union in the June referendum, exchange rate declined sharply and gave rise to the inflation expectations; consumer inflation expectation has jumped to 2.75 percent in the UK for the year 2017. While there has been no Brexit in the Eurozone or in the United States, rising commodity prices are giving rise to the concerns and the effects of easy money seem to be kicking in.
In the United States, 5-year 5-year (5y-5y) forward inflation expectations have reached to 1.97 percent in November. That is the highest level since August last year. Similarly, in Eurozone, European Central Bank’s (ECB) preferred gauge 5y-5y forward inflation expectations have reached more than 1.5 percent this month, which is the highest level in eight months.
Concerns have already started surfacing with regard to central bank’s stimulus measures. The market is preparing for a rate hike from the US Federal Reserve in December and lower stimulus from the ECB, when the current measures of bond buying expire in March next year.
