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Global stocks at all-time high as investors look past inflation jump

Global equities hit record highs as investors carefully balanced their forecasts of a strong economic recovery from the coronavirus prior to the next monthly meeting of the Federal Reserve Board of Governors.

The FTSE All-World Index has risen 0.1% to its latest record, with a 1.1% increase in global equity benchmarks this month.

The Stoxx600 stock index across Europe rose 0.4%, setting a new record. Meanwhile, the UK’s FTSE 100 rose 0.6%. Futures markets have suggested that Wall Street’s S & P 500 index hit a record high a day ago.

“Economic data continues to improve, but everyone expected it,” said Caroline Simmons, UK Chief Investment Officer at UBS Wealth Management. “People are now waiting to see what happens at the central bank,” she added.

The Federal Reserve Board of Governors will hold a monthly meeting next week. The meeting will be carefully watched after Vice-Chair Randall Qualls. Asked We will talk about reducing monthly bond purchases of $ 120 billion, which has supported financial markets since March 2020.

“The Fed is likely to start talking about more open cuts in asset purchases in the coming months, with a view to a real taper next year,” Simmons said.

Government bonds continued their rebound that began earlier in the week, despite less concerns and high US inflation. Yields on 10-year Treasuries, the global bond market benchmark, fell 0.02 points to 1.443%, approaching the lowest level since early March. Germany’s comparable Bund yield fell 0.03 percent to minus 0.285 percent.

Thursday’s data showed key consumer price inflation in the United States 5% increase In 12 months to May — the largest increase since 2008.

“It’s not a sign of unexpected demand pressure that could disrupt the Fed’s dovish policy outlook,” said Daiwa economist Chris Sikruna. As due to “dismissed.

However, Credit Suisse warned in a research note about inflation “increasing investor complacency.”

“Another round of high inflation indicators should encourage central banks … The market can be quite surprised to show that patience to ease the financial situation is diminishing. “The Zurich lender said.

In currencies, the euro fell 0.1% against the dollar to $ 1.2156 and Sterling fell to $ 1.4156 with the same margin. The dollar index, which measures currencies against the currencies of major trading partners, was flat.

Brent crude, the international oil benchmark, rose 0.3% to $ 72.71 a barrel.

Global stocks at all-time high as investors look past inflation jump Source link Global stocks at all-time high as investors look past inflation jump

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