S&P 500 inches to record high on U.S. factory data
The S&P 500 edged closer to an all-time high on Wednesday, as economic data released showed that U.S. factory activity climbed to a new record in June.
Data released by IHS Markit via its flash manufacturing PMI survey showed that it rose to a reading of 62.6 in June.
Wednesday’s reading is the highest level the index has hit since the expansion of the survey in October 2009.
Today’s number followed a final reading of 62.1 in May and comes as inflation has impacted the cost of goods.
In a statement from IHS they alluded to this, stating that, “firms raised their selling prices at a quicker rate in an effort to pass on these higher costs.”
The NASDAQ hit a new high, with the S&P 500 also nearing a record.
EU business activity rises to 15-year high
It was reported today that business growth in the Euro zone rose at its fastest pace in the last 15-years as lockdown restrictions eased.
The report came as IHS Markit also released its European based survey, showing that its Purchasing Managers’ Index climbed to 59.2 this month.
This was an increase from May’s reading of 57.1, and became the highest reading since June 2006, beating expectations of a rise of 58.8.
There was a similar rise in the United Kingdom, which saw its PMI to 61.7, which was slightly lower than last month’s record reading.
Markets now wait to see what the Bank of England will do tomorrow when it announces its last monetary policy decisions.
Oil prices hit 2-year high
Crude oil prices continued to rebound on Wednesday, a week after dropping as a result of the Federal Reserve monetary policy meeting.
Prices climbed to a 2-year high in today’s session after trading at an intraday low of $69.71 7-day ago.
This comes as it was reported by the Energy Information Administration that crude inventories in the U.S. dropped by 7.6 million barrels last week.
WTI Crude hit a day’s high of $74.37, which was its highest level since October 2018, where prices traded above $76.
Many believe that prices could attempt to recapture those highs in upcoming days.
Quote of the day – “Short-term volatility is greatest at turning points and diminishes as a trend becomes established.”– George Soros