Home Business NewsBusiness FTSE 100 shrugs off inflation fears

FTSE 100 shrugs off inflation fears

by LLB Editor
11th Jun 21 12:28 pm

The FTSE 100 got off to a good start on Friday, building on a strong finish to trading on Wall Street last night.

“Investors may have been nervous ahead of yesterday’s US inflation numbers but despite consumer prices rising at their fastest rate since 2008, and more than economists expected, shares were up.

“Perhaps central banks really have convinced the markets that any rise in inflation will be short-lived and will not force them to ramp up rates too rapidly,” says AJ Bell investment director Russ Mould.

“Among the inflationary pressures currently playing out are wage increases driven by a scarcity of candidates for jobs in certain sectors. In this context it was notable to see recruitment firm Robert Walters upgrading its full year expectations amid strong demand for its services

“While rising prices are not having a negative impact on equities at the moment, traditional store of value gold is starting to enjoy a decent run. The metal price is back above $1,900 per ounce and if it can maintain its recent momentum, traders may start to eye last year’s record highs.”

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