When Expectations Meet Reality

The global economy continues to show resilience. But beneath the surface, some increasingly uncomfortable divergences are emerging.

In this week's charts we examine six signals worth watching:

→ Interest-rate expectations have risen, but long-term bond-yield forecasts have lagged.

→ Korean equities have been falling even as growth forecasts improve.

→ US demand for conventional credit has weakened sharply.

→ Lending to non-bank financial institutions continues to surge.

→ Supply-chain pressures are re-emerging, complicating the inflation outlook.

→ Europe's old fiscal divide is reversing, with France increasingly vulnerable.