Will the economy stop the galloping stock market? | Money


The disconnect between the stock market and the economy could not be more blatant.

The FTSE 100 index of top UK companies has jumped more than 20% since March, and the value of US top companies, as measured by the S&P 500, hit record highs last week. Meanwhile, thousands of jobs on the shopping streets are being cut every day, GDP has collapsed, and many city centers are barely open.

One of the reasons for this divergence, experts say, is that economic data tends to look back, while markets look ahead. Government measures, such as lowering interest rates to stimulate spending, have supported stock prices, but not all companies have benefited.

An unexpected rise in inflation from 0.6% to 1%


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