Stocks higher despite Covid and inflation concerns

Stocks higher despite Covid and inflation concerns

UK and European stocks are higher this morning as investors assess economic data and the spread of the Delta variant.

US stocks are having another strong week despite a number of issues weighing on sentiment. The latest US Producer Price Index came in stronger-than-expected suggesting inflation may not have peaked and there is growing expectation that the US Fed will taper its bond-buying program before year end.

Rising Covid-19 cases are also a concern for investors who are hoping that economic recovery can continue to grow with successful vaccination programmes. It is noted that overnight, the world’s third-largest container port at Ningbo-Zhoushan in China was partially closed after a worker tested positive.

European stocks have also had a good week supported by strong corporate earnings and central bank support.


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