Investors unshaken by inflation surge as Wall Street opens higher
Wall Street’s main indexes opened higher today as investors shrugged off data showing a rise in inflation.
Consumer prices rose 0.7 per cent in April after a 0.4 per cent increase in March, exceeding economists’ predictions of a 0.6 per cent gain.
The Dow Jones Industrial Average rose 0.3 per cent, while the Nasdaq Composite gained 0.5 per cent.
The S&P 500 added 0.3 per cent, but concerns about a spike in prices kept the index on course for its smallest monthly gain since February.
US market ‘fearless’
“This market is basically fearless right now,” said Dennis Dick, a trader at Bright Trading in Las Vegas.
“There were inflation jitters, most of which the market has shrugged off as there is a fear of missing out among investors as we scale record highs and we are seeing some money get back into tech stocks over the past two weeks.”
London’s FTSE 100 advanced 0.4 per cent this afternoon, as homebuilders and property developers buoyed the index.
Meanwhile, the mid-cap FTSE 250 added 0.4 per cent, as housebuilder Vistry Group shot up 4.3 per cent on strong property demand.
Market movers
The FTSE 100’s biggest winner was property developer Barratt Developments, who rose 3.4 per cent, followed by Persimmon, up by 3.1 per cent.
Melrose Industries and Taylor Wimpey also rose three per cent and 2.9 per cent respectively.
Miner Polymetal was the afternoon’s biggest faller, dropping by 2.7 per cent, followed by hotel group Whitbread’s 2.1 per cent hit.
Meanwhile, Hikma Pharmaceuticals and Fresnillo both dipped by 1.8 per cent and 1.3 per cent respectively.
Around the world
Asian shares rallied to put global equities on track for seventh day of gains as investors bet the US will lead the world out of the pandemic.
Tokyo led the rise, with the Nikkei jumping 2.1 per cent, while MCSI’s index of Asia-Pacific shares outside Japan added 1.1 per cent.
The Hang Seng climbed 0.1 per cent, but Chinese blue chips were an outlier, losing 0.1 per cent a day after closing near a three-month high.
Elsewhere, the Eurostoxx 50 and German Dax both gained 0.8 per cent.