A report on Consumer Prices Helped to Boost World Stocks
Let’s have a look at the stocks. People should keep in mind that, stocks rose to their highest in just over a week on March 11. Interestingly, stocks strengthened their positions after a report on U.S. consumer prices improved investor sentiment about inflation and lifted the Dow Jones Industrial Average to a record close. For example, European stocks climbed, with the pan-European STOXX 600 index reaching a one-year peak as well as up 0.3% on the day.
Moreover, Britain’s FTSE 100 index gained 0.14%. Also, France’s CAC 40 added 0.2% and Italy’s FTSEMIB 1%. Interestingly, Germany’s DAX traded flat.
It is worth noting that, MSCI’s All Country World Index rose to its highest in just over a week, up 0.5% on the day. As a reminder, this index tracks stocks across 49 countries.
South Korea’s Kospi index gained 2.3% and was on track for its first three-day advance in three weeks.
Interestingly, the Shanghai composite advanced 1.9% helped by local lending data.
In Japan, the Nikkei 225 added 0.5%.
Stocks and various factors
It is worth mentioning that, e-mini futures for the U.S. S&P 500 index gained to their highest in two weeks, up 0.7%.
Interestingly, the relative calm in the Treasuries market also helped risk sentiment, with the benchmark yield settling around 1.5% after reaching a one-year high above 1.6% last week. As a reminder, investors worried about the U.S. economic recovery running too hot.
People should keep in mind that, the European Central Bank (ECB) sets its policy on Thursday. Importantly, the ECB is likely to signal faster money printing. This way the ECB wants to control borrowing costs without adding firepower to its already aggressive pandemic-fighting package.
Based on the information provided by the U.S. Labor Department, its consumer price index rose 0.4% in February. As a reminder, the consumer price index rose 0.3% in January. Interestingly, core CPI which includes volatile food and energy components, edged up 0.1%, just shy of the 0.2% estimate.
Importantly, analysts largely expect inflation to pick up as vaccine rollout leads to the reopening of the economy. However, worries remain that additional stimulus could create problems.
Investors will monitor an auction of 30-year debt on March 11, pursuing to cover massive shorts. Interestingly, a frail seven-year auction in late February helped fuel inflation concerns and sent yields higher.
As a reminder, world stocks rose to their highest in just over a week on Thursday.
