Another day, another set of data is moving share prices, but at least this time it’s positive. Markets are all in the green this morning, and the US posted some good numbers overnight after data showed some cooling in the US, boosting traders’ optimism that we’re nearing peak rates. It’s worth remembering that shares also rose on Tuesday because a dataset was interpreted to mean a rate rise next month by the Federal Reserve was nailed on.
It seems investors are looking for anything they can at the moment. Since the jobs reports started last week, we’ve swung from red to black and back again depending on how each set made people feel.
Nonetheless, the FTSE 100 is up 0.25 per cent this morning with the top risers and fallers within around a 2 percentage point range, so nothing significant is underpinning that. The DAX and CAC 40 are up 0.24 and 0.19 respectively. The big numbers were across the pond with the S&P 500 adding 1.33 per cent overnight and the Nasdaq just shy of 2 per cent.
This was after the Producer Price Index, a manufacturing measure of inflation, fell 0.5 per cent over the month of March, while the 12-month figures dropped to 2.7 per cent. The price for final demand goods was down 1 per cent last month. There was also an increase in the number of claimants for unemployment benefits – the two datasets combined to boost traders’ confidence that the Fed will slow down rate rises, even though we’re still expecting a 0.25 percentage point increase in May.
It’s similar in Europe as well with forecasters expecting a quarter point increase next month, although some believe the European Central Bank may go straight to a half point. Closer to home, we’ll know more next week when our inflation figures are released on Wednesday. There are also UK unemployment figures on Tuesday, and next Friday we’ll have US PMI figures, which could have a similar effect to this week’s data overload. More fun to come.
