Wed, 23 Jun 2021

NEW YORK, New York - A surge in inflation failed to deter investors on Thursday as they weighed back into U.S. stocks.

The Standard and Poor's 500 hit a new record high.

Consumer prices surged 5 percent last month, the Labor Department said Wednesday. It was the highest annualized inflation rate in nearly thirteen years.

"As long as we've got cheap money, we've got a savings glut, not just in the West but in Asia. I think there is decent support for stocks," Jane Foley, head of foreign exchange strategy at Rabobank told The Wall Street Journal Thursday.

"I don't imagine there is going to be a really serious downturn."

At the close on Thursday, the Standard and Poor's 500 was at a record high of 4,239.18, having gained 19.63 points or 0.47 percent on the day.

The Dow Jones industrials added 19.10 points or 0.06 percent to 34,466.24.

The Nasdaq Composite gained 108.58 points or 0.78 percent to 14,020.33.

The U.S. dollar was slightly easier on Thursday despite the inflation data. The euro rose fractionally to 1.2172. The British pound appreciated to 1.4172. The Japanese yen was a fraction higher at 109.35. The Swiss franc firmed to 0.8949.

The Canadian dollar edged up to 1.2092. The Australian dollar was slightly higher at 0.7754. The New Zealand dollar added nearly a quarter-cent to 0.7198.

Stocks in the UK and Europe were flat. The FTSE 100 in London edged up 0.10 percent. The German Dax dipped 0.06 percent. The Paris-based CAC 40 slipped 0.26 percent.

On Asian markets, in Japan, the Nikkei 225 advanced 97.76 points or 0.34 percent to 28,958.56.

The Hang Seng index in Hong Kong inched down 3.72 points or 0.01 percent to 28,738.88.

China's Shanghai Composite rose 17.19 points or 0.48 percent to 3,608.59.

The Australian All Ordinaries edged up 36.80 points or 0.49 percent to 7,558.80.

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