Indices fall back as inflation worries return
|Stocks on both sides of the Atlantic have suffered losses this afternoon, as higher Australian inflation casts a shadow over the session, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks in retreat across major indices
“Tech stocks continue to cling on to small gains this afternoon but the broader tone is firmly negative. Monday’s session had shown the signs of rotation that so many investors had been hoping for, transferring leadership from unstoppable tech names to unloved sectors, but this has fizzled out rapidly. Higher inflation in Australia has not helped matters, and raises the uncomfortable prospect that major bugbear of the past two years is set to make an unwelcome return, leading to rate hikes featuring in central bank policy once again. All eyes are now firmly on Friday's PCE data in the US, at least until Sunday's French elections.”
Gold price hits two-week low
“Faced with resurgent inflation in Australia, investors have slammed the ‘buy’ button on the dollar this afternoon, which in its turn has sent gold down to a two-week low. Like stocks there had been hope of a sustained turn higher, but a test of the recent lows around $2280 seems likely.”
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