At lunchtime across the Atlantic Ocean, the Dow Jones is down 122.01 points, or 0.35%, having opened in the green foot seven out of the last eight days, while the S&P 500 has so far retraced by 0.23%, or 9.79 points.
Major US stocks have been quiet during recent days as investors weigh up a number of factors, including high valuations, supply-chain concerns and the overall economic outlook.
Losses in major tech companies, including Apple and Amazon, held the US markets back on Monday. While ten-year US Treasury yields increased from the lowest since April following Janet Yellen’s comments that a marginally higher interest rate could be beneficial.
“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen said.
The FTSE 100 has managed to maintain the gains of the morning session off the back of strong performances from housebuilder stocks.
“With Persimmon, Barratt Development and Taylor Wimpey all up 2.8%, 2.3% and 2% respectively, the FTSE 100 has managed to hold onto its 20 point gain on the day,” said Hugh Shields, financial trader at Spreadex.
“This comes alongside news that UK house price inflation has reached a 7-year high, giving further hints that the MPC will have to take a deep look into increasing interest rates come its 24th of June announcement.”
It has also been a positive Monday for cryptocurrencies. Both Bitcoin (+1.55%) and Ethereum (+4.45%) find themselves in the green this afternoon, this in light of the Bank of England’s announcement that it will discuss the regulation of ‘stablecoins’.
“We are a long way from cryptocurrencies being used in day-to-day life, but this news is crucial step for the integration of digital currencies into mainstream society, a positive for all long-term crypto investors,” says Shields.
Finally, the president of El Salvador confirmed on Sunday that he will make bitcoin legal tender in the Central American country.
Pending backing by the country’s congress, El Salvador would become the first country in the world to officially adopt the cryptocurrency.
