Fitch Says Inflation And Interest Rates Remain Most Significant Watch Item For Global Credit; Core Inflation Remains Sticky And Well Above Central Bank Targets Despite Headline Disinflation Gaining Pace In U.S. And Eurozone In Q2
Portfolio Pulse from Happy Mohamed
Fitch Ratings has identified inflation and interest rates as the most significant watch items for global credit. Despite headline disinflation gaining pace in the U.S. and Eurozone in Q2, core inflation remains sticky and well above central bank targets.
August 17, 2023 | 2:06 pm
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The SPY ETF, which tracks the S&P 500, could be impacted by Fitch's observations on inflation and interest rates. High inflation could lead to increased interest rates, potentially affecting the performance of the S&P 500.
The SPY ETF tracks the S&P 500, which is a broad representation of the U.S. stock market. If inflation remains high and interest rates increase, this could lead to a slowdown in economic growth, which would likely negatively impact the performance of the S&P 500 and, by extension, the SPY ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50