Stock Markets Today: G-7 Summit, Central Banks and Inflation, U.K. Reopening

Good morning. The Group of Seven summit gets underway, markets contend with inflation fears and the U.K.’s reopening is poised to be delayed. Here’s what’s moving markets.

G-7 Summit

The Group of Seven summit, being held in Cornwall in the U.K., gets underway fully on Friday. U.K. Prime Minister Boris Johnson and U.S. President Joe Biden met ahead of the event, with Johnson saying Biden didn’t push him on fixing relations with the EU, following tensions over the past week related to Northern Ireland and the Brexit agreement. Elsewhere, leaders are set to confirm plans for extra Covid-19 vaccine doses and there will be plenty of attention on green goals, including climate finance and ambitious plans to accelerate the shift toward electric cars.

Inflation Debate

The European Central Bank renewed its pledge for faster bond-buying even as policy makers adopted a more optimistic view on the risks facing Europe’s economy. ECB President Christine Lagarde said the bank remains sanguine on inflation, though some members are said to have raised the prospect of upside risks. The policy decision coincided with consumer-prices data in the U.S. which topped expectations and fanned worries that inflation could become more established as the economy bounces back. The Treasuries market, however, seems to support the view that inflation will prove transitory.

Reopening Delay

U.K. Prime Minister Boris Johnson is poised to delay the final lifting of virus restrictions in the country, due to happen on June 21. Johnson is set to announce next week whether the final curbs will be lifted, but a recent rise in cases in the country is set to force a rethink and deal a blow to hospitality and entertainment businesses. The airline industry, meanwhile, is pushing for a faster restart of U.K.-U.S. travel, calling on leaders to go further than the tentative pledges made this week to resume flights. Carriers also want to overturn EU compensation laws after paying out billions in refunds during lockdowns last year.

Bitcoin Challenges

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2021-06-11 05:25:00

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