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Summary
- UK shares are expected to start on a positive footing on Friday
- Trade deficit narrowed to £0.9 billion in April 2021 from £2 billion in previous month
- The total exports from the UK grew by 2.5 per cent to £49.36 billion
UK shares are expected to start on a positive footing on Friday, 11 June, with the benchmark FTSE gaining slightly at the open as most of the Asian shares soared marginally in the trade today. The investors have apparently managed to regenerate the confidence that has been partially sombered by the fears of rising inflation even after the annual inflation rate in the United States in May 2021 rose to 5 per cent, witnessing the highest reading since August 2008,
This was the month just before Lehmen Brothers filed for bankruptcy protection in September 2008, sending immediate shockwaves to the global equity markets.
The sharp rise in the inflation rate has been largely due to the lower base as compared to the same month in 2020, when the country remained shut following the heavy restrictions in place due to nationwide lockdown.
Partial supply shortage, a rapid surge in the consumer demand following the large-scale reopening have led to a considerable surge in the commodity prices.
Among the Asian peers, Japan’s Nikkei 225 ended flat at 28,948.73, down 0.03 per cent, Shanghai Composite of China dropped 0.46 per cent to 3,594.35, Hong Kong’s Hang Seng surged 0.42 per cent to 28,860.75, Kospi of South Korea gained 0.79 per cent to 3,250.07, India’s Nifty 50 added 0.38 per cent to 15,797.90, while ASX 200 of Australia settled moderately higher at 7,312.30, up 0.13 per cent.
Earlier yesterday, the headline FTSE 100 index ended lacklustre with a slight gain of 0.10 per cent at 7,088.18. The domestic market participants have remained robust on the back of massive reopening of battered sectors, as well as the ever-expanding scale of the ongoing vaccination programme.
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The precautionary measures taken by the government of the United Kingdom in order to contain the spread of the infection associated with the mutated variants have also helped in lifting the mood of institutional investors.
The comprehensive decisions taken in the ongoing three-day G7 summit in the UK are likely to provide stimulus to global equities. The trade deficit of the UK narrowing to £0.9 billion in April 2021 from £2 billion in the month earlier has a potential to ease the dejection amidst the investor class. The total exports from the UK grew by 2.5 per cent to £49.36 billion in the corresponding month, the data unveiled by the Office for National Statistics (ONS) showed.
