Bets on risky assets get undercut by strike threats

While signs that inflation has peaked have fuelled bets on everything from a weaker US dollar to a rebound in global stocks in 2023, there is growing unease among some market strategists that a breakout in labour costs will crimp the flow of money out of havens and into assets that thrive in an economic upswing. — Reuters

NEW YORK: Investors positioning for a rally in riskier assets next year may be underestimating the threat from millions of workers around the world protesting for higher wages.

While signs that inflation has peaked have fuelled bets on everything from a weaker US dollar to a rebound in global stocks in 2023, there is growing unease among some market strategists that a breakout in labour costs will crimp the flow of money out of havens and into assets that thrive in an economic upswing.