US inflation and unemployment as expected

US inflation figures released yesterday showed the smallest increase since late 2020, which has sent the markets into a positive flurry. Today’s data on non-farm payrolls should reveal an easing of tightness in the US jobs market, hopefully showing that unemployment is still at 3.5%. Both of these results combined may well add to the sentiment that the Fed is unlikely to increase interest rates at their next meeting in September, which would set the markets up for a solid September start. 

Silver and gold on the up

The value of silver and gold has been climbing in the last six months, with a notable uptick in the last few weeks. Gold often moves in opposing directions to the stock market, so when stocks are doing well, gold is doing badly and vice versa. Investors tend to flock to gold as a safe haven: it’s a known quantity and an asset that has been around for centuries. When gold has risen in value previously, it has usually been before a recession, which could mean that there is a similar recession on the horizon. This may come as a surprise to no one, rather further solidifies the economic data that has been seen in recent weeks. 

Klarna announces monthly profitability

The privately owned Swedish payments company Klarna announced yesterday that it had hit profitability for the month of May, although its quarterly results were still at a loss. Having shot to success, the business struggled last year as inflation soared and consumer confidence fell. The chief has now announced that Klarna may soon be ready for a muchly anticipated IPO, as and when the conditions are right. 

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Sources: Bloomberg, Nasdaq, IG, AJ Bell, Reuters, Financial Times