Inflation Fears, AI Cheers

The global macro backdrop continues to evolve in ways that would have surprised many investors at the start of the year. Expectations of widespread monetary easing have steadily receded as inflation has proven more persistent and economic activity more resilient than anticipated. In our charts this week we examine:

 

• The growing bias toward monetary policy tightening
• Firming US labour demand
• Supply side inflation risks
• Ebbing US tariff pressures
• South Korea’s semiconductor boom
• Equity capital flows across Asia

 

Together, these charts highlight a world economy that remains surprisingly resilient, while raising important questions about the outlook for inflation, interest rates, and global investment trends.