Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.

Quick recap

• A 9.1% U.S. CPI print on Wednesday spooked markets this week, and futures were briefly pricing a 1% hike. This was reversed on Friday when the UoM inflation expectation came in lower than anticipated.
• Bank earnings were another significant event this week, with JP Morgan delivering a rare miss despite higher interest income caused by stale deal-making. Citi coped better, reporting higher trading revenues, offsetting weaker investment banking results.
• While heatwaves and airport chaos are already plaguing Europe this summer, Italy found its way back to the top of investors’ worries after the Five Star movement pulled out of Draghi’s coalition. As a consequence, periphery bonds came under pressure again, even though finishing the week off at worst levels.
• Lastly, Chinese markets were feeling the bite of zero-Covid, giving up most of their YTD outperformance.

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