Shares in international stock markets hit record highs yesterday, April 14th, in the wake of data showing that US inflation is not rising too fast as the economy reopens.
There is a fear that high inflation could jeopardise the stance of the US Federal Reserve (Fed), European stocks earlier rose 0.2%. Most stock indices in the Asia-Pacific region also rose.
In Japan, however, the Nikkei index fell 0.4%, as rising coronavirus cases raised doubts about the country’s economic recovery with 100 days to go before the Tokyo Olympics. The MSCI index, which tracks stocks in 50 countries, rose 0.2% to a record high.
The US consumer price index rose 0.6% in March, the largest increase since August 2012, according to data released yesterday. However, the figures are not expected to change the view of Fed Chairman Jerome Powell that higher inflation in months to come, will be temporary.
Eurozone government bond yields fell as data on manufacturing and industry in the single currency area and in Japan suggest that there are obstacles as the world recovers from the Covid-19 crisis. Yields on 10-year US bonds stood at 1.632% after falling to a three-week low earlier.
Bitcoin hit a record high of more than $64.000, extending its rally this year on the day the Coinbase cryptocurrency trading platform went public.