World shares mixed as China reports jump in inflation

Wednesday, June 9, 2021 | Elaine Kurtenbach, AP Business Writer

Heorge Washington
The Federal Hall statue of George Washington overlooks the New York Stock Exchange, Monday, June 7, 2021. Stocks are off to a mixed start on Wall Street as technology companies climb while banks and energy companies fall. The S&P 500 index edged up 0.1% in the early going Tuesday, June 8 while the Dow Jones Industrial Average was slightly lower. (AP Photo/Richard Drew)

BANGKOK (AP) — World shares are mixed after China reported a big jump in factory gate prices at a time when inflation is a top investor concern.

Shares fell London, Frankfurt, Tokyo and Hong Kong but rose in Paris and Shanghai. U.S. futures edged higher.

China's producer price index, which measures prices of raw goods and services, jumped 9% from a year earlier in May, the fastest increase since 2008 and above analysts' forecasts, the government said.

However, the headline consumer price index rose a more modest 1.3%, less than expected. Inflation in the first five months of the year averaged 0.4%.

Surging prices for oil and other commodities and manufacturing components such as semiconductors were the main factor behind the jump in producer prices, Julian Evans-Pritchard of Capital Economics said in a commentary. He noted prices of electronics products, in strong demand during the pandemic, have eased.

“This adds to signs from the latest trade data that global demand for Chinese consumer goods may be starting to drop back as distortions to spending patterns caused by the pandemic reverse," he said.

For now, the Chinese government appears to be focusing on resolving supply side constraints driving higher prices and less worried about a potential spiral in prices due to surging consumer demand, economists say.

Investors are more concerned with U.S. inflation data due out Thursday and what it might augur for the current regime of ultra-low interest rates and other market-supporting policies.

Germany's DAX edged 0.1% lower to 15,631.65 while the CAC 40 in Paris added 0.1% to 6,557.69. In London, the FTSE 100 dropped 0.6% to 7,052.75. U.S. futures edged higher, with the contract for the S&P 500 up 0.1% and that for the Dow industrials barely changed.

In Asia, Tokyo's Nikkei 225 index fell 0.4% to 28,860.80 and the Kospi in Seoul also fell 0.9% to 3,216.18. Hong Kong shed 0.1% to 28,742.63, while the S&P/ASX 200 in Sydney gave up 0.3% to 7,270.20. The Shanghai Composite index advanced 0.3%, to 3,585.84.

U.S. stock indexes meandered to another uneven finish Tuesday, with investors awaiting U.S. inflation data. But some corners of the market — cryptocurrencies and some social media-hyped stocks — kept traders busy.

The S&P 500 inched up less than 0.1% to 4,227.26. It remains close to its May 7th all-time high and has barely moved the last two days. The Dow Jones Industrial Average slipped 0.1% to 34,599.82, while the Nasdaq mustered a 0.3% gain, closing at 13,924.91.

Smaller company stocks once again outpaced the broader market, with the Russell 2000 index of smaller companies gaining 1.1% to 2,343.76.

Wendy’s jumped 25.9% as it appeared to join a batch of companies favored by individual investors taking cues from social media forums. Clover Health Investments soared 85.8%. Other companies whose stock values have gyrated sporadically include AMC Entertainment, Blackberry and GameStop.

Cryptocurrency traders appeared to be in a selling mood. Bitcoin and other popular digital currencies, including Ethereum and Dogecoin, all fell sharply, according to Coindesk. Bitcoin, which climbed above $60,000 early this year, slid 7% to $32,690.

Shares in Fastly, an internet cloud services provider, climbed 10.8% after it said it had addressed an internal problem that caused dozens of websites around the globe to go down briefly, including the home page of Britain’s government and The New York Times.

The path of inflation could determine whether central banks continue to generously support economies or pull back, but the pandemic is causing disruptions and distortions that add to the uncertainty.

Aside from surging prices of raw materials, fuel and other items needed for manufacturing, factories are struggling to keep up with demand as the pandemic recedes in many places. That has pushed up prices of everything from food to household staples.

In other trading, U.S. benchmark crude oil gained 42 cents to $70.47 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 82 cents to $70.05 per barrel on Tuesday. Brent crude, the international standard, added 43 cents to $72.64 per barrel.

The U.S. dollar slipped to 109.47 Japanese yen from 109.49 yen. The euro rose to $1.2187 from $1.2174 yen.

Featured Article: Learning About the VIX - Volatility Index

7 Stocks That Would Make Great Graduation Gifts

Graduations are often seen as an ending. But they also have the potential to be an exciting new beginning. We may be biased, but we believe an ideal way to launch your graduate into the world is by helping them begin their investing education. And one way to help them do that is by having them invest in what they know.

This current crop of graduates has never lived in a world without things like iPhones, the internet, and they were the generation that likely had smartphones when they were in high school. This is a generation that has embraced and demanded relentless technological innovation. And they have rewarded the companies that have delivered.

Now it’s time to reward them, and maybe yourself as well. In this special presentation, we’ll take a look at seven stocks that would make ideal graduation gifts. Each of these stocks has a lesson(s) for graduates to take throughout their lives and careers.

View the "7 Stocks That Would Make Great Graduation Gifts".

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.