14th May 2021
Weekly Round Up
Inflation data from the US this week indicated a 4.2% rise from a year ago. This jump was higher than expected and caused huge volatility in the major stock market indices.
In the UK, the FTSE 100 started the week over 7,100 points. However, it fell to a low on Thursday of 6,800, before steadily improving into morning trading on Friday.
Markets in the US felt the pain of the inflation increase, with the S&P 500 losing 2.5% of its value from Monday open to Thursday close. The tech-heavy Nasdaq was particularly sensitive to any inflation related news, as questions are raised over what are deemed ‘expensive’ valuations. The news wiped 4.5% off the Nasdaq’s value just this week.
Greggs, the bakery chain renowned for food-on-the-go, rose sharply on Monday following a strong trading update. It settled later in the week to a gain of nearly 9%.
Scottish Mortgage Investment Trust, the UK's largest investment trust, fell 9% this week as the US inflation worries knocked the tech-heavy trust.