The majority of Asian stocks rose on Wednesday, following the US stocks and bonds. Investors ignored higher-than-forecasted inflation in the US and focused on the global economic recovery.
Japanese stocks were the exception, falling in light of a slow rollout of the vaccination program. However, the MSCI Global Index climbed to a record high.
European contracts rallied, and US stock futures held steady near highs. The White House said the US vaccination campaign would continue despite the suspension of vaccines from Johnson & Johnson due to emerging health concerns.
Treasury bonds have stabilized. Treasuries yield is around 1.63%. German Bonds are around -0.30%. The US dollar continues to decline, while the New Zealand dollar’s growth is in the lead among the G10 currencies. Oil rose above $60 a barrel.
The latest data showing that US consumer prices rose more than expected last month did not make much of an impact, given the distortion associated with the price collapse a year earlier. Investors remain confident that the recovery continues, supported by central banks and government spending.
“A lot of growth and inflation have already been priced into the market,” said Emily Roland, investment strategist at John Hancock Investment Management. In her opinion, any surge in inflation in the next two quarters will not have a significant impact on the market.
Main market quotes:
- S&P 500 (F) 4,134.88 +2.13 (+0.05%)
- Dow Jones 33,677.27 -68.13 (-0.20%)
- DAX 15,234.36 +19.36 (+0.13%)
- FTSE 100 6,890.49 +1.37 (+0.02%)
- USD Index 91.748 -0.096 (-0.10%)
- US Crude Oil Reserves at 17:30 (GMT+3).