While we saw more record highs for the S&P500 and Nasdaq yesterday, the gains weren’t sustained with stocks slipping back, despite very strong earnings announcements from JPMorgan Chase, Goldman Sachs and Pepsico.
European markets also had an underwhelming session finishing the day broadly unchanged with markets uncertain whether to stick or twist, after seeing record highs for the DAX and Stoxx 600 on Monday, and look set to open lower this morning after a weaker Asia session.
Today looks set to play out in a similar fashion with inflation concerns set to remain in focus, even without this afternoon’s US PPI report, with the latest UK CPI numbers for June, also due out shortly.
These have been going in the same direction as US CPI numbers albeit from a slightly lower base, but nonetheless rising price pressures have also been being led by rising factory gate and commodity prices.
We’ve already seen evidence of higher prices, notably in terms of higher air fares and other transport costs, however these appear to be merely a symptom of…
