Stocks higher despite Covid and inflation concerns

Stocks higher despite Covid and inflation concerns

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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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