The Nasdaq's growth stocks continued clawing back investor favours who had rotated away from them on rate assumptions that have been proven completely wrong so far. U.S. 10-year yields did lift by 4 points, but thats from 3-month lows. They remain very friendly to those companies leveraged with debt to expand future ambitions. The Nasdaq gained for the sixth time in seven sessions, boosted by increases in shares of Apple and Tesla, while the tech-heavy S&P 500 increased 0.2% to a new record as U.S. stocks turned higher in the last hour of trading.

Data was light, but expectations for inflation over the next three years rose to 3.6% from 3.1%, the second-highest level recorded dating back to June 2013, the Federal Reserve Bank of New York said. Officials may discuss these inflation expectations when they meet this week as they follow these models closely to see if they are influencing actual inflation. Expectations are that the Fed will continue with its current velocity of bond purchases.

Inflation hadn't elicited much response from gold this year until recent data arrived. The Bureau of Labor and Statistics inflation read of an annual 4.2% increase didn't affect gold much, but the 6.2% surprise in the BLS producer price index and fired up the mills as gold resumed its price march up.

Though all data and forecasts have been way off the mark for some time now, it's a problem when it comes to inflation reads. The University of Michigan's one-year consumer inflation expectations spiked to 4.6%, while the Conference Board's twelve-month equivalent was a spikier 6.5%. Finally, the core Personal Consumption Expenditures price index hit 3.1%. Even though this data has hammered analysts' expectations, five-year inflation expectations are currently in the 2.5% to 3.0% range, which matches prior post-recession levels.

Commodities are the leading edge of these inflation fears, and many are showing clear signs of cooling. We mentioned lumber prices dramatic 40% drop recently, but sawmills have seen buyers hold off on purchases driving Chicago prices down 18% last week. Thats the biggest drop for this data since 1986. Coppers also traded below $10,000 a ton recently, while Midwest hot-rolled coil steel futures have stabilized since Mays record high. The Fed would be hard-pressed to change tone with those leading-edge indicators supporting their current dialogue of 'temporary' inflation, but Oil is the bogeyman for inflation. Its three weeks run on economic reopening's continued unabated last night.

U.S. initial public offerings numbered fifteen this week after raising $2.5 billion, which may pique the attention of old-timers who see floats peak near market tops; however, it's a rising trend, so the peek may be hidden behind higher altitude clouds for now.

Highlights came from Apple and Microsoft, who led the big end of town up 2.46% and 0.78%, respectively. Medical equipment company ResMed spiked 6%, with Salesforce up 2.5%. Chemist chain Walgreens Boots Alliance declined 1.59%, and Dow Inc fell 1.50%, while Adobe gained 2.89%.

US Dow Jones 34393.75 -85.85 -0.3%
US S&P500 4255.15 +7.71 +0.2%
US Nasdaq 14174.14 +104.72 +0.7%
UK FTSE 7146.68 +12.62 +0.2%
German Dax - - -
Gold futures ($US/oz) 1865.9 -13.7 -0.7%
Spot Iron Ore ($US/t) 222.3 +2.35 +1.1%

As the outbreak spreads in the U.K., the government is scrambling to vaccinate its population. While Prime Minister Boris Johnson delayed his plan to lift travel restrictions to allow more time to prevent further deaths, the two vaccines made by Pfizer and AstraZeneca have proven they prevent hospitalization for individuals infected with the Covid's delta variant.

The two-dose shot from BioNTech and AstraZeneca is 96% effective after two doses, while the University of Oxford Covid shot is 92% effective. This is good news as people infected with the delta variant end up in the hospital at twice the rate of the alpha variant, according to studies.

Europe's Stoxx 600 lifted 0.25% by the close, stripping back earlier gains. Oil and gas stocks ascended 2%, and autos fell 1.1%. EU industrial production was strong in April, with output rising 0.8% month-on-month to double economists wildly effectual projections. Our futures are flat this morning after Mondays 57-point rise for the SPI200.

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Advanced Share Registry Limited published this content on 15 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2021 07:13:05 UTC.