Data released on Friday showed the Producer Price Index in the United States rose more than expected last month.
The PPI figures rose by 1.0% in March, after gaining by 0.5% in February. Annually, the index climbed by 4.2%. which was the biggest rise since 2011.
Markets had forecasted the PPI to increase by 0.5% in March. with an annual increase of 3.8%. However, the rise suggests that inflation may continue in this trajectory.
Many will now begin to look toward the Fed to see if any will be taken if this theme continues throughout the rest of the year.
The S&P 500 was up 0.33% as of writing.
Germany nears new lockdown restrictions
As the third wave of the COVID-19 pandemic continues to sweep through Europe, Germany today suggested that it could soon implement a national lockdown.
The latest figures showed over 26,000 new COVID-19 cases in Germany, and a total of around 56,000 in the past two days.
However, after a slow start to its vaccination program, it was revealed that 1.375 million vaccine shots were also administered in that same time span.
Regarding the possibility of a lockdown, the German health minister, Jens Spahn, stated that, “Many citizens recognize the need to break this wave with additional measures and the majority are in favor of stricter rules. It needs one lockdown to break the current wave”.
The DAX 30 closed marginally higher despite the news.
FTSE 100 slips as Prince Philip passes away
The FTSE 100 fell for the first time in a week as news broke that Prince Philip had sadly passed away.
Prince Philip who had long been battling severe illnesses died on Friday, aged 99.
In a statement from Buckingham Palace, it was confirmed that, “It is with deep sorrow that Her Majesty The Queen announces the death of her beloved husband, His Royal Highness The Prince Philip, Duke of Edinburgh”.
Although the Royal family have received some criticism recently because of allegations made by Prince Harry and Megan Merkle, they continue to hold a high standing in the eyes of many.
The FTSE 100 was down 0.38%, its biggest drop since March 31st.
Quote of the day – “Losses are necessary, as long as they are associated with a technique to help you learn from them”– David Sikhosana
Senior Market Analyst