Global indices surge to all-time highs while oil continues to trade higher, questioning the ‘temporary’ nature of inflation concerns.

Although June finished off calmer than some of the market excitement in the middle of the month may have led us to expect, inflation was still a nagging concern for investors

Comment from David Jones, Chief Market Strategist at European investment trading platform,

Although June finished off calmer than some of the market excitement in the middle of the month may have led us to expect, inflation was still a nagging concern for investors. Central bankers have continued to try and soothe any worries about the rise in the cost of living. The Bank of England governor, Andrew Bailey, is the latest, saying that any acceleration in inflation this year would likely be temporary and was just a short-term fallout from the Covid bounce-back.  It remains to be seen how temporary it ends up being, but it’s fair to say that markets shrugged off the mid-June wobble and it was seemingly business as usual.

In the US, the broad-based S&P500 and tech-biased NASDAQ indices pushed to fresh all-time highs as the month finished. The S&P is now up a staggering 95% since the March 2020 low.  It is said that bull markets climb a wall of worry, but at the moment investors seem happy to keep buying the dips, pushing stocks out to ever-dizzying heights.

Perhaps of more concern is the direction of the crude oil market. This week, we saw another multi-year high for crude, hitting its best levels since October 2018.  If we see ongoing strength in oil, this is one thing that could keep the rise in inflation anything but temporary and may give central bankers a real headache in the second half of this year.

Meanwhile, the news from Gap that it was closing its UK and Ireland stores was not a major surprise, and in early trade, the shares were up slightly.  The company’s stock recently hit its best levels in more than five years, so this critical overhaul of its business seems to be well received so far, by investors at least – but it does suggest that they won’t be the last high street big name to undertake such a shake-up.

Read this next

Digital Assets

Bybit exits UK market ahead of regulatory changes

Bybit is suspending its cryptocurrency services for users in the United Kingdom due to impending regulations from the country’s Financial Conduct Authority (FCA).

Digital Assets

Binance argues SEC trampled authority set by Congress

Binance, Binance.US, and Changpeng Zhao have jointly filed to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC) in June.


Oscar Asly replaces Rasha Gad as CEO of M4Markets Dubai

Seychelles-regulated brokerage firm M4Markets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Retail FX

Capital Index UK reports mitigated loss despite revenue drop

FCA-regulated brokerage firm Capital Index (UK) Limited has released its annual financial report for the year 2022.

Digital Assets

Mike Novogratz’s Galaxy Digital expands in Europe

Galaxy Digital, the New York-based cryptocurrency financial services company founded by Mike Novogratz, is expanding its presence in Europe by appointing Leon Marshall as its first European CEO.

Metaverse Gaming NFT

Turingum Partners with MarketAcross to Drive Web3 Adoption in Global and Japanese Markets

Global blockchain PR leader MarketAcross joins forces with Japanese Web3 specialist Turingum to mutually expand its market reach, aiming to fortify Turingum’s worldwide footprint and MarketAcross’s presence in the lucrative Japanese blockchain landscape.

Digital Assets

Binance to delist all stablecoins in Europe next year

During a public hearing with the European Banking Authority (EBA), an executive from Binance said that the exchange could ultimately delist stablecoins from its European platforms by June 30, 2024.

Industry News

“Unconscionable conduct”: ASIC fines National Australia Bank $2.1m for overcharging customers

NAB faces a $2.1 million penalty for unconscionable conduct, as the Federal Court rules the bank knowingly overcharged customers, and took over two years to rectify the situation.