Wall Street creeps higher as investors bide time until key economic reports
Wall Street’s main indexes edged higher today as cautious investors awaited key economic data later in the week.
The Dow Jones Industrial Average rose 0.2 per cent at the open, while the Nasdaq Composite gained 0.1 per cent.
The S&P 500 also added 0.1 per cent as it continued to recover its losses following a four per cent pullback in May on fears of rising prices.
Investors are now awaiting key manufacturing and services sector PMIs later in the week to judge the pace of an economic reopening, as well as the main event of US payrolls due on Friday.
“The speed of the economic recovery has caused some dislocations and makes it hard for investors to get a proper hold on whether the inflationary patterns are transient or persistent,” said Rob Sechan, managing partner and co-founder of NewEdge Wealth.
“However, we think the reopening (of the economy) will overpower these concerns.”
London markets
London’s FTSE 100 edged higher today as heavyweight energy and consumer staples stocks boosted the index.
The blue-chip index advanced 0.1 per cent this afternoon, with oil majors BP and Royal Dutch Shell both climbing by more than 0.6 per cent.
The FTSE 100 has traded in a tight range since April as concerns grew that central banks might cut off support early as economies reopen and inflation climbs.
Meanwhile, the mid-cap FTSE 250 also rose 0.1 per cent after touching a record high earlier in the session.
Market movers
The afternoon’s biggest winner was Rolls-Royce, who rose 2.9 per cent, followed by miner Evraz, up by 2.7 per cent.
Fashion house Burberry and Coca-Cola also rose 2.5 per cent and 2.4 per cent respectively.
Engineer Renishaw was the afternoon’s biggest faller, dropping by 2.5 per cent, followed by investment manager M&G’s 2.7 per cent hit.
Meanwhile, B&Q owner Kingfisher and Rightmove both dipped by 2.1 per cent and 1.8 per cent respectively.
Around the world
Asian stocks hovered around record peaks today, as investors cheered the latest evidence of a sustained rebound in global economies.
The mood was less buoyant than yesterday, however, as traders waited for key US jobs data on Friday to assess what an economic recovery would mean for central bank policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan touched a three-month peak before profit-taking in Chinese markets pulled it 0.1 per cent lower.
Australian stocks hit a record high, while Japan’s Nikkei shot up 0.5 per cent.
US and European equity futures were steady, with S&P 500 futures flat and EuroStoxx 50 futures up 0.2 per cent.