Advanced Share Registry : Market News 16 June 2021

U.S. equities sank from all-time highs as retail sales and producer prices moved in opposite directions; in a wrong way. Investors are far from panic, though, as stocks remain near record highs as interest rates more than accommodate the risk in investments with the yield on 10-year Treasuries certainly didn't blink, sitting at 1.49per cent.

Firstly, wholesale prices encouraged inflation alarmists again by leaping for the fifth month in a row. Last month, the producer price index rose 0.8 per cent last month, Vs. polled Economists who 'forecast' *cough, a 0.5 per cent increase. The move supports the idea these changes are could endure through to summer now, but the Federal Reserve has always said these current outbursts of inflation will fade away by next year.

Last month, sixty per cent of wholesalers price hikes were due to new autos, petrol, metals, farm seeds and beef. Wholesale food prices climbed 2.6% in May, following the 2.1% increase in April, far from appetizing for investors should the trend persistently. Likewise, the cost of energy rose 2.2% in May. Stripping out volatile products like food and energy delivers the 'core rate' of wholesale inflation, which advanced 0.7% last month to 5.3% from 4.6%. Thats the most significant gain since the government first began reporting the metric in 2014. To date, consumers are dodging most advances in producer prices as they haven't been passed on to retailers, which is why the Fed decisions arena aren't motivated by the PPI. Investors kept their cool because of supply chain interruptions, labour shortages and emergency stimulus spawned this inflation, all of which will be less of an issue in the second half of the year- fingers crossed.

The second mild disappointment came from retail sales data revealing a sharp fall of 1.3% in May. Economists polled had forecast *cough, a 0.7% decline. However, despite artificial consumer assistance from federal fiscal stimulus all but gone, shoppers still spent much more now than in 2020, which augers well for the economy. Auto sales sank 3.7%, giving a clear picture that buyers would prefer to wait for better prices once shortages ease in a few months. Backing the price 'protest'; confidence among homebuilders fell in June for 10-month lows as costlier expenses weigh on demand and optimism.

Sales at bars and restaurants jumped 1.8% in May as freed Americans dine out again at full-service restaurants, book hotels and plane flights. Gasoline sales also rose 0.7% as a natural consequence, with prices expected to grow in the months ahead as the summer driving season begins. FYI, all sales data increases are partly up due to price inflation too.

Uber bank JPMorgan Chase and Home Depot weighed the Dow down with their respective losses of 1.52% and 0.93%, with each dollar move converting to a 6.58-point swing. Other loss leaders in the paltry 30 stock index were Salesforce, Walt Disney, and Nike. Technology and growth stocks powered the Nasdaq to a new record.

Meanwhile, Covid-19's Delta variant has been confirmed in 74 countries, as it attempts to become the dominant strain globally. Southern U.S. states (Red states) have lagged on vaccination and are most at risk of hospitalization and death as variant cases nearly double doubling every two weeks there. The World Health Organization is saying it accounted for more than 90% of new cases in the past week.

Dow Jones	34299.33	-94.42	-0.30%
US S&P500	4246.59	-8.56	-0.2%
US Nasdaq	14072.86	-101.287	-0.7%
UK FTSE	7172.48	+25.8	+0.4%
German Dax	15729.52	+55.88	+0.4%
Gold Futures ($US/oz)	1856.40	-9.5	-0.5%
Spot Iron Ore ($US/t)	222.35	+0.50	+0.00%

Europes' STOXX 600 index increased a paltry 0.15% as basic resources dragged on performance. Some major Euro economies revealed their own inflation data, with Germanys final harmonized inflation at 2.4% annually in May and French final inflation at 1.8%. Our futures are off 18 twenty minutes to open after another record yesterday for the S&P/ASX 200, which closed at 7379.

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