1. Inflation fears afoot
The Reserve Bank of Australia could come under pressure to raise interest rates sooner than expected, with inflation data out tomorrow expected to be worryingly high. Economists have raised their forecasts for tomorrow’s inflation number, taking their core inflation number up by 0.7% to an annual rate of 2.4%. What happens with the inflation result will have a big bearing on when the market expects the RBA to start raising interest rates, which always worries stock market players and those overborrowed. And when stocks fall, our super fund balances fall too.

2. Omicron-infected patients on the slide
It’s not all bad news for economic and stock market updates, with Omicron-infected patients in hospital on the slide. This is the best news the economy could get. The Australian says if the falling hospitalisation trend continues, we could be in for an Omicron-led economic recovery within weeks. Of course, that’s a big ‘if’. But if it’s right, it will help offset stock market negativity coming from the threat of rising interest rates. For health and wealth reasons, we better hope it is right!

3. Bitcoin looking a bit shaky
Bitcoin has lost close to half its value since its November high and now stock markets are bracing for sell offs. But why? Bitcoin is seen as the power play for speculators but when stock market sentiment turns negative, it becomes an early warning indicator that stocks and other high growth assets could be in for trouble. This week the US central bank is expected to tell us when interest rates will be raised and after huge borrowing since the Coronavirus, this is rocking stock markets and the likes of bitcoin. Since November, bitcoin has fallen from $89,000 to $49,000.

4. Australian executive increasingly change tac on climate change
A survey for the 2022 Deloitte CxO Sustainability Report shows about two-thirds of Australian executives believe that climate change will significantly impact their organisation’s strategies and operations in the near future. “The proportion saying that the world needs to act now [on climate change] rose to 74% from 52% just a few months earlier, the report showed,” Bloomberg reports.

5. Tech stocks tumble further as iron ore rallies, ASX to drop
ASX futures fell 49 points or 0.7% to 7006 as the Australian dollar dipped 0.6% to 71.85 US cents. On Wall St: Dow -1.3%, S&P 500 -1.9%, Nasdaq -2.7%. In Europe: Stoxx 50 -1.6%, FTSE -1.2%, CAC -1.8%, DAX -1.9%.