A sharp rise of the CPI affects financial markets, as UK keeps easing restrictions

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When the world was thrown into the pandemic, it saw many prices pushed into a sharp deflationary shock.

Now that countries like ours are easing the restrictions, with Europe slowly following behind, the stock exchange felt a surge of the CPI, which greatly affected the US market. However, this should stabilize itself in the days to come. Let’s take a look at what we can expect.

CFDs in demand

When the stock exchanges around the world suddenly went back up, after a vertiginous fall, due to the pandemic, the CFDs based on the stock market indexes played a great role. It is not surprising that once again, they are taking on central stage, as the world is reopening its doors businesswise, and tourism should be following soon as well. Therefore, many people are looking for great CFD trading platforms UK, as they see new opportunities arising.

There is suddenly a change in what is popular to trade and what is trending down. And a great way to take advantage of this, as traders know, is to place their investment money on either a rise or a fall of the price of a stock value, which they can do through the use of CFDs (Contract for Difference). We are seeing the safe values, during the sanitary crisis, rapidly heading down, sometimes losing value dramatically, like with Viacom and other firms in the industry of broadcasting. All the while, those that had suffer serious financial losses, like the travel industry, are suddenly gaining value again, and should continue to do so, at least in the near future.

Will the rise in Commodity Prices continue?

Most specialists in the industry believe that the sharp rise we are seeing right now, is only an adjustment to the opposite that happened a year ago. And although if you look at it solely, then compare it to the last decade, it may seem quite impressive, the truth is it is only relative to that particular event. Or so they think. That said, the US retail sales number came in a lot lower than expected in April, and that is somewhat a cause for concern.

There are more bumps coming up, on the road to recovery, from this sanitary crisis. But that is only normal, after such a cataclysmic event. People have to find their security again, before it all goes back in place. And that may take a while, since the pandemic lasted for so long. But in the end, all should be fine (as in normal) relatively soon.

 


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