Global Market Square
The U.S. and European stock markets ended Wednesday’s session mostly lower. Fear of inflation has taken hold of the global markets as China’s producer price index rose 9% in May, the most significant yearly increase since 2008.
In direct response and expecting a similar inflationary rise in the U.S. when the Consumer Price Index is released, the core government debt rose ahead of the release, signaling that the U.S. economy will overheat. U.S. consumer prices are expected to rise 4.5% to 4.8% in May; if that materializes, it may be the most significant jump since 1993.
Another indicator that has dropped is mortgage applications, which fell 3.1% from last week, even with interest rates for 30-year fixed-rate mortgages averaging 3.15%. However, applications were impacted by rising home prices—the increasing demand mixed with the minimal supply.
Eurozone Summary for June 9:
- Stoxx 600 closed at 454.24, up 0.68 points, or 0.15%.
- FTSE 100 closed at 7,095.09, down 14.08 points, or 0.20%
- Dax index closed at 15,581.14, down 59.46 points, or 0.38%.
Wall Street summary for June 9:
- The Dow Jones Industrial Average closed at 34,599.82, down 152.68 points, or 0.44%.
- The Standard & Poor’s 500 closed at 4,219.55, down 7.71 points, or 0.18%.
- The Nasdaq Composite Index closed at 13,924.91, down 13.16 points, or 0.09%.
- The Birling Capital Puerto Rico Stock Index closed at 2,665.84, up 5.76 points, or 0.22%.
- The U.S. Treasury 10-year note closed at 1.50%.
- The U.S. Treasury 2-year note closed at 0.16%.