November 9, 2021

Global Stocks Rise Ahead of US Inflation Data

 Global stocks saw gains at record highs on Monday as risky assets found support from an encouraging U.S. NFP jobs report in October as well as a positive reading on U.S. inflation this week.

Short -term inflation expectations rose in October according to a survey released by the New York Federal Reserve (Fed) on Monday plus consumer expectations for the amount of money they will earn and spend over the next year rose to an eight -year high.

The annual inflation expectation reading rose in October for the 12th consecutive month to 5.7% from 5.3% in September marking a new high for the survey launched in June 2013.

Yet the medium-term inflation expectation for 3-year inflation remained unchanged in October at 4.2% after 3 consecutive months of rising.

The Dow Industrial Average index hit a record high on Monday with a 0.45% gain as a result of the approval of a $ 1 trillion equity infrastructure bill.

The S&P 500 was up 0.19% and the Nasdaq Composite was up 0.16%.

Shares of Tesla Inc fell 4.4% after Elon Musk tweeted on Saturday about selling 10% of its stake if users of the social media network voted “YES” and the result was 57.9% of the vote “YES”.

The pan-European STOXX 600 index rose 0.06%.

World stocks rose 0.20% after hitting record highs last week as taking a dovish central bank signal and strong labor data in the US added to the confidence generated by a good earnings season on both sides of the Atlantic.

Investors saw higher US Treasury yields on Monday despite still being below the 1.50% level ahead of this week’s note and bond auction.

The benchmark 10 -year yield rose 2.1 basis points at 1.474% in morning trade.

The US dollar weakened on Monday where it fell below its 15 -month high after US jobs data on Friday prompted investors to re -evaluate rate hike expectations and the central bank's tolerance for inflation.

The dollar index fell 0.191% while the Euro rose 0.19% to $ 1.1588.

Ether which supports the ethereum network reached a record high of $ 4,768.07 last up 2.6% that day while Bitcoin rose 4% to $ 65,851.

Bitcoin last rose 4.39% to $ 66,078.33.

Oil prices were strong following the US infrastructure bill passed and China’s export growth supported the outlook for energy demand while Saudi state-owned producer Aramco raised the official selling price for crude oil.

US crude rose 0.91% to $ 82.01 a barrel while Brent oil also rose 0.94% to $ 83.52.

Gold rose 0.3% to $ 1,822.86 an ounce.