Home > Markets wrap: US inflation data, JPMorgan touts UK stocks while Bitcoin soars

Markets wrap: US inflation data, JPMorgan touts UK stocks while Bitcoin soars

  • Investors are eyeing producer and consumer data on Tuesday and Wednesday

  • JPMorgan highlights UK stocks as overweight

  • Bitcoin reaches $68, 642, its highest price against the US dollar

US stocks closed near record highs on Monday, with investor optimism largely intact ahead of key US inflation data. The markets also benefited from a rally in travel and airlines stocks as COVID-19 related travel restrictions were relaxed.

The S&P 500 Index closed +0.09%, while the Dow Jones Industrials Index added +0.29%. The Nasdaq 100 Index however saw a minor dip of -0.14%.

Gold stayed near a two-month high as inflation fears saw inflows into the precious metal. In currencies, the US dollar index hovered around 94.095, as well as held against the Japanese yen. Meanwhile, the Euro steadied at $1.1588.

US inflation data out on Tuesday and Wednesday

The week is likely to see investor sentiment shaped by key inflation data expected on Tuesday and Wednesday.

The markets could move lower on producer price index data scheduled for release today, with greater focus then turned to consumer price index data on Wednesday.

Analysts expect producer prices will show an increase of 0.6% in month-over-month readings for October. The market also expects data on the consumer price index for October to signal a similar change in September.

Tuesday also sees two key speeches- from European Central Bank’s Christine Lagarde and Fed’s Jerome Powell.

JPMorgan upgrades several UK stocks to overweight

European stocks have opened mixed as the market awaits inflation data from the US. The UK’s FTSE index is down 0.02% at 7,293, while Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB are all flat.

JPMorgan analysts say UK stocks are a good buy at the moment after upgrading the region to overweight. According to the bank, the FTSE 100 has lagged other markets for the past six years and 25 stocks could be worth buying now. 

Top picks include ITV, Babcock, Lloyds, Barclays, Shell, AstraZeneca, and Intermediate Capital Group.

Bitcoin rallies to $68,000

Bitcoin’s status as a safe-haven asset has strengthened after the crypto saw increased investment inflows amid its parabolic rally to a new all-time high above $68,000.

The flagship cryptocurrency currently trades around $68,179 after paring gains at the intraday peak of $68,642 according to data from CoinGecko.

Inflation fears seem to be pushing investors into crypto, with most other assets in the sector surging alongside Bitcoin. Ethereum has reached a new all-time high above $4,800, while Solana and Binance Coin are also seeing major moves on Tuesday.

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