The 'Beyoncé blip' of Sweden should remind investors that inflation could flare up again unexpectedly, Morgan Stanley says
The bank's global chief economist Seth Carpenter said in a note to clients Sunday that prices could unexpectedly soar again later this year, because until recently COVID had still been stifling demand in certain sectors.
He pointed to Sweden – where Beyoncé's Renaissance World Tour started last month – as evidence that the US Consumer Price Index could soon give markets a nasty surprise. The Nordic country"demonstrates how much residual pent-up Covid demand there can be, especially in services, and how it can show up where you least expect it," Carpenter wrote.
Last week, Sweden reported higher-than-expected inflation of 9.7% in May, with soaring hotel and restaurant prices fueling the surge.
"We should not be surprised if hikes resume when data do not cooperate," Carpenter wrote."The Beyoncé effect should keep us from getting too complacent."
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Alibaba and more: Morgan Stanley names 5 global stocks with at least 50% upsideThe Wall Street bank is bullish as the broad MSCI Asia Pacific equities index has entered a new bull market, rising 25% from last October's low.
Read more »
This Chinese internet stock can rally more than 30% thanks to A.I., Morgan Stanley saysThe firm also upgraded shares to overweight from equal weight.
Read more »
Morgan Stanley sees this budget car rental stock adding to its already strong gains for 2023The firm upgraded shares to overweight from equal weight.
Read more »
Beyoncé Wears Her Most Ethereal Renaissance Tour Look YetLast night in Amsterdam, for Beyonce’s latest stop on the RenaissanceTour, the superstar switched things up— tapping IrisvanHerpen to design her most ethereal look yet.
Read more »