Inflation remains high in the US, growth assets fall
US CPI was measured at 8.3% year on year in the month of April, which despite being a small decline from the previous month reaching 8.5%, did not do much to allay fears about the current inflationary environment leading to recession. US inflation has increased each month since August 2021, making this the first reading in 10 months to come in lower, though only marginally, so all eyes will be on the next few readings to see whether the trend continues. Equities reacted to the print, which was taken as adding to risk of more interest rate hikes than currently priced into equity markets. Growth assets tend to suffer in a rate hiking environment, which yesterday was observed mostly in the US tech index (Nasdaq) and extremely speculative assets such as cryptocurrency. US sovereign debt has since rallied following initial volatility, as recession fears increased.