Rolling coverage of the latest economic and financial news
- Latest: FTSE 100 closes at three-week peak
- Brent crude hit $71 per barrel
- UK factory activity rose at record pace last month
- New orders and employment up, but so are prices….
- Nationwide: Annual house price inflation hits 10.9% last month
- ‘Race for space’ as people seek gardens and larger houses
- Bank of England monitors UK housing boom as it weighs inflation risk
That’s all for today. A quick recap.
Factories in the UK, the eurozone and the US have all posted very rapid growth as demand jumped as lockdown measures are eased.
UK manufacturing growth boomed in May, as the #PMI rose to a record high (65.6) amid the strongest intake of new orders in nearly 3 decades. However, producers also saw supply-chain disruption, leading to soaring output costs. Read more: https://t.co/VNuR2pn9I8 pic.twitter.com/SoBkvGKcwN
The global manufacturing sector saw a strong upswing in production in May, as the #PMI rose again to an 11-year high of 56.0 (April: 55.9). Capacity pressures were still evident though, with price inflation surging as a result. Read more: https://t.co/0d1KTO9C7W pic.twitter.com/uHSgmSLuW6
Related: Boris Johnson says no evidence to delay England reopening
Younger house buyers are just as keen on building a new life in the country as they are to move to the bright lights of a big city as they react to the post-pandemic changes under way in working patterns and rapidly rising property prices.
Data released on Tuesday by the Nationwide building society showed that demand for property has pushed average house prices up 10.9% over the past year, the fastest pace for almost seven years.
Related: ‘Race for space’ fuels 10.9 % surge in UK house prices
Related: House price inflation will continue for now, hitting the young and low-paid | Larry Elliott
Related: Bank of England monitors UK housing boom as it weighs inflation risk
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Related: Krispy Kreme to float on US market after five-year absence
Related: Biden corporate tax plan could earn EU and UK billions, study shows
Related: Amigo faces insolvency after UK court rejects compensation cap
Related: TfL gets £1bn bailout in return for making case for driverless trains
Related: BP re-enters US market buying up string of solar farms for £155m
Related: Domino’s Pizza looks for 5,000 chefs and riders as takeaway boom continues
Related: NatWest preparing for just 13% of staff to work in office full-time
Related: Just 7% of UK shop payments predicted to be in cash by 2024 – report
Related: UK’s G7 targets ‘must be more ambitious’
Related: ‘Unscrupulous’ UK energy brokers will have to disclose commission fees
Global stock markets hit a new record high today, Reuters reports, as investors broadly shrugged off inflation worries.
MSCI’s gauge of stocks across the globe rose 2.51 points or 0.35%, to 713.96, marking a new record high, led by broad gains across Europe’s indexes (which hit a new record).
“Markets are letting the macroeconomic data lead the way with Treasury prices lower and yields higher after strong numbers this morning,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina, adding that news of oil supplies rapidly drawing down, which will lead to higher oil prices, has prompted traders.
World stocks hit another record, oil up in big data week https://t.co/nwt9nERBlg pic.twitter.com/Lbr9hJepv9
Although global stocks are now around 20% above pre-pandemic highs, a combination of strong earnings growth and reasonable valuations relative to still-low bond yields points to further upside for stocks.
At a sector level, we reiterate our preference for energy and financials, for which valuations and a supportive macro backdrop point to further catch-up potential following significant underperformance in early 2020.”
