In contrast, higher interest rates threaten to tip Europe into 1970s-style stagflation, as the economy sinks into a downturn and inflation runs above 5 per cent. In China, it remains unclear whether drip-feed stimulus can revive an economy in deflation. That’s accelerated an investor exodus from both regions.

Jittery China and sputtering Europe boost bull case for US stocks comes via ChinaTechNews.com.