Good news is bad news in US, most news is bad news in EZ [Video]

All was going well yesterday; equities were in the green, when suddenly the dark clouds gathered and it started raining in the markets. The biggest catalyzer of yesterday’s sentiment reversal was the stronger-than-expected US economic data, which revived the Federal Reserve (Fed) hawks and sent the equity indices lower. The S&P500 and Nasdaq slumped more than 1%.

Although the US futures are again in the positive this morning, we saw yesterday that the winds could rapidly change direction, and the volatility is picking up.

Due today, investors will be watching the US ADP and the European CPI data.

The rising inflation in Europe revives the European Central Bank (ECB) hawks. ECB’s Muller said yesterday that the ECB should discuss 75 bp hike at the September policy meeting , as inflation outlook has failed to improve.

And Goldman Sachs warned that inflation in Britain could hit 22% next year if the natural gas prices remain high. The ECB and the BoE hawks are not …