Shares rise as markets ignore ‘shocking’ inflation
The S&P/NZX 50 Index rose 32.38 points, or 0.3%, to 12,550.39. Within the index, 22 stocks fell, 22 rose and six were unchanged. Turnover was $163.8 million.
BNZ interest rate strategist, Jason Wong said the market was “unperturbed by the shockingly high” consumer price index with the S&P 500 moving higher and market interest rates falling.
The domestic rates market followed the global trend. The yield on a 10-year government bond fell to 1.69%, down roughly 20bps over the past two weeks.
“The market is increasingly backing the Fed’s view that high inflation will prove transitory and therefore will be very slow to remove the current level of policy stimulus,” Wong said.
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