The FTSE 100 is now up 0.6% for the day, reaching 7,088 points, with safety equipment maker Halma and coal miner Thungela leading the way with increases of 3.28% and 3.97% respectively.
Miners Evraz and Glencore are also benefiting from increases in stock prices after a record annual jump in domestic economic output in April, which boosted traders’ confidence in a robust recovery.
However, BT fell 2.69%, almost wiping out yesterday’s 3% rise at the expense of Altice who bought a 12% stake in the telecommunications giant.
Europe reflected the rise in the FTSE, with the German Dax up 0.55% and the Cac in France up 0.73%.
So far, Wall Street appears poised to join the global leap amid rising confidence inflation that will prove transient, leaving room for continued central bank support.
Futures on the S&P 500 index rose 0.2% after the benchmark gauge of the MSCI All Country World index hit an all-time high on the basis of US consumer price data. United showing that May’s increases were closely associated with economic reopenings. This suggests that these price spikes may subside as demand returns to more normal levels.
“It takes a brave investor to fight the Fed, but it gets harder and harder to hold on as inflation hits 5% year over year,” wrote Lewis Grant, senior manager of global equities at Federated Hermes, in a note. A “combination of attractive valuation and price dynamics is likely to cause quantitative investors and systematic strategies to increase their allocation” to the cheaper parts of the market, he said.