Stocks Move Upwards With US Inflation

May showed a record in consumer prices, displaying noticeable inflation. Investors seem to be looking for some direction as global stocks show either stagnance or slight upward movement. The S&P 500 index was one of the winners, inching upwards while other indexes matched its trajectory. Across Europe and Asia, stocks are showing slight but noticeable reactions.

For example, the Stoxx Europe 600 index rose 0.3% while already being up 0.4% for the week. Germany’s DAX, however, didn’t match that, remaining mostly without movement. The French CAC 40 index grew for the week, displaying an upward trajectory and a rise of 0.4%. UK stocks also seem to be bouncing back, as the FTSE 100 jumped 0.5%.

In the US, stock futures mostly remain stagnant, showing no noteworthy movement. ES100, YM00, and NQ00 have all moved 0.1% or less, following what was a relatively successful day for Wall Street. As we said near the beginning of the text, the S&P 500 showed a significant gain, jumping almost 0.5%. Markets seem to be disregarding the fact that consumer prices have jumped to a record high in the US. Namely, consumers can now expect an average price hike of about 5%.

In Asia, the situation was similar to other global trends, with some indexes jumping and some remaining flat. So, looking at Tokyo’s Nikkei 225 index, we see very little movement in either direction. However, we can also see that Hong Kong’s Hang Seng index showed noticeable growth, amounting to about 0.4%. Seoul’s Kospi index was even more active than that, growing 0.7% in a single day. The Shanghai Composite index didn’t follow the generally positive trend of Asian stocks, dropping 0.3%.

Economic experts see the rise in inflation as a result of used car purchases by rental companies. As people return to traveling and general restrictions weaken, we can expect some stock turbulence.