Rising CPI in Euro, US will undermine bond market: Nick Parsons

Deflation is a thing of the past, says Nick Parsons, Head of Research, UK and Europe, National Australia Bank. The outlook from here is further increase in consumer price index (CPI) primarily in Europe and the US. This is going to undermine the bond market. Its rally does not have very far to go, says Parsons. The weakness in global markets is mainly due to the pressure in the German banking sector which led to a decline in the DAX Index by 2 percent, he says. Also, the upcoming US presidential debate and the OPEC meet have caused jitters among investors. Watch video for more.