Market Talk - Wednesday, May 19


British inflation more than doubled in April, the start of a likely climb in prices this year as rich economies recover from pandemic lockdowns, but one that the Bank of England hopes will prove temporary. Britain’s consumer price index rose by 1.5% in April. That was a sharp jump from the 0.7% rise seen in March and marked the highest CPI reading since March 2020, driven by higher power and fuel bills as global oil prices climb from their pandemic lows of 2020. April’s inflation reading was, however, only a touch above the 1.4% rise seen in a Reuters poll of economists and was still below the Bank of England’s 2% target.

House prices across the UK grew at the fastest pace in March since shortly before the financial crisis hit in 2007, according to official figures. With buyers rushing to take advantage of the government’s stamp duty holiday, extended to the end of June, the average UK house price climbed 10.2% in the year to March, up from 9.2% in February. This is the highest annual growth rate the UK has seen since August 2007, said the Office for National Statistics. The average UK property cost £256,000 in March, £24,000 more than in March 2020. Prices rose 2.1% between February and March. London remains the area with the lowest annual growth for the fourth month running, down to 3.7% from 4.4%, suggesting that the exodus from the capital has continued, as a shift to working from home prompted many office workers to reassess their housing and commuting needs. However, the average price in the capital remained the most expensive of any region at £500,000 in March.

The major Europe stock markets had a negative day:

  • CAC 40 decreased 91.12 points or -1.43% to 6,262.55
  • FTSE 100 decreased 84.04 points or -1.19% to 6,950.20
  • DAX 30 decreased 273.02 points or -1.77% to 15,113.56

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00495 or -0.40% to 1.21746
  • GBPUSD decreased 0.00791 or -0.56% to 1.41102
  • USDCHF increased 0.0064 or 0.71% to 0.90387

Some economic news from Europe today:


House Price Index (YoY) increased from 9.2% to 10.2%

Car Registration (YoY) (Apr) increased from 11.5% to 3,176.6%

Car Registration (MoM) (Apr) decreased from 453.4% to -50.1%

Core CPI MoM (MoM) (Apr) decreased from 0.4% to 0.3%

Core CPI (YoY) (Apr) increased from 1.1% to 1.3%

Core PPI Output (MoM) (Apr) decreased from 0.7% to 0.5%

Core PPI Output (YoY) (Apr) increased from 2.0% to 2.5%

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