European stocks are at record highs as shocks from unexpectedly strong U.S. inflation data earlier in the week ease.
The STOXX index of 600 companies was up 0.09%, enough to reach a new record high for a second straight day. The CAC 40 French blue-chip index in Paris also hit a new all-time high.
Positive sentiment was helped by strong earnings from Cartier-owned Richemont and Deutsche Telekom, though Anglo-Swedish drugmaker AstraZeneca fell after announcing a profit miss.
The MSCI All Country stock index rose 0.12% at 752.94 points, holding steady after Wednesday’s drop in the wake of data showing U.S. inflation at its highest in three decades. The index is about five points below its all-time high.
The world’s stock prices posted their biggest fall in over a month on Wednesday of this week (November 10) on data showing that the U.S. consumer price index rose 6.2% year-on-year in October, the strongest rise since November 1990.
Bond yields also rose today (November 12), with the 10-year U.S. Treasuries yield at 1.572%.
While the inflation data suggested that the current wave of price spikes due to chronic worldwide supply constraints could have more staying power than hoped, many investors seem to think inflationary pressure will eventually ease.
Oil prices dipped as the market grappled with a stronger U.S. dollar, along with concern over increasing U.S. inflation, and after the Organization of the Petroleum Exporting Countries cut its 2021 oil demand forecast due to high prices.
Brent crude futures were down 0.66% at $82.21 U.S. per barrel while U.S. West Texas Intermediate (WTI) futures dropped 1.12% to $80.66 U.S. per barrel.
Shares in Asia were largely steady, with Japan’s Nikkei index up 1.13%, helped by brisk earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.62% but mainland Chinese shares were softer, with CSI 300 index dropping a slight 0.2%.