World Market Update 06/11/2021

The U.S. consumer price index posted its biggest year-on-year gain since August 2008 of 5 percent, following a 4.2 percent rise in April. Hefty contributions from short-term rises in airline ticket prices and used cars raised doubts about underlying inflationary pressures. Meantime, data from the U.S. Labor Department revealed new claims for unemployment benefits in the country dropped to the lowest level in nearly 15 months last week, as the coronavirus is expected to take a back seat in the near future.

And as we mentioned yesterday that bitcoin will soon be made a legal tender, the International Monetary Fund said on Thursday it has economic and legal concerns regarding the move by El Salvador’s government. That is believed to further cloud the outlook for an IMF-backed programme and widen spreads on the country’s bonds.

To the charts now:

U.S. stocks:

DOW: +19.10 (34,466.24 USD)

S&P 500: +19.63 (4,239.18 USD)

U.S. 30-YEAR TREASURY BOND: 105.25 USD

YIELD: 2.14%

SPOT GOLD: 1,899.56 USD

U.S. DOLLAR CROSS RATES:

YEN: 109.3800

EURO: 0.8208

STERLING: 0.7057

SW FRANC: 0.8935

CAN: 1.2081

AUD: 1.2872

EUROPEAN MARKETS:

UK FTSE – 100: +33.96 (+0.48%, at 7,122.14 GBP)

FRANCE CAC-40: +23.39 (+0.36%, at 6,569.88 EUR)

GERMAN DAX-30: -3.35 (-0.02%, at 15,567.87 EUR)