World stock capitalization has reached a new record of $63,9 trillion (not far from the planet's GDP), but, at least in America, the p/e ratio, at 16,1 for the S&P 500, looks steep, especially in light of the fact that in the 1st quarter of this year the profits of American companies fell sharply. There are no problems instead for ip/e of Asian markets. The MSCI Asia Pacific regional index, which today trades around yesterday's levels, has a p/e of 13,1.
This morning Japanese data reveal the jump in inflation in April, when the VAT was increased by three percentage points. Virtually all of the increase was reflected in the basic index (which excludes energy and food): inflation for the year shot up to a somewhat Japanese 3,2%, comforting those who want Japan to get out of the deflationary trap.
The unemployment rate remains low, at 3,6%, while the industrial production index lost 2,5% (the trend remains flat). In America, first quarter GDP figures were disappointing (-1%), but an annualized 4% rebound is forecast for the current quarter.
In the currency field, the euro and yen are roughly stable (1,36 and 101,6 against the dollar), as are WTI oil ($103,5/b) and gold ($1258/ounce). Futures on Wall Street and London are also stable.
