Stock rebound not a relief rally as China data lifts mood

London

THE risk rally's back on and most of the credit's going to easing of concern around Hurricane Irma and North Korea. There's likely more to it than that.

Consider the latest price data from China. They indicated a surge in inflation that suggests global growth is on the march and should prolong the rebound in commodities. At the same time, loose financial conditions - from persistently low interest rates to record equity prices and a weak dollar - have created a feedback loop that has intensified the hunt for yield.