Insight - Dizzying rotations and inflation rapids

Uneasy: Traders on the floor of the New York Stock Exchange. Monday’s price action was extraordinary as eurozone stocks ended 2.5% higher and emerging market equities skidded 2.3%, confusing as it had been seen in the value camp. ─ AFP

WHETHER we get an entrenched spiral or just an ephemeral price burst, a Spring of hair-raising inflation anxiety is proving notoriously hard for markets to price.

Spooked by a backup in long-term borrowing rates over the past month, which the Federal Reserve (Fed) appears relaxed about despite protests from other central banks, investors have engaged in another dizzying and somewhat confusing rotation of stocks, sectors, regions and currencies this month.