European Stocks near Record High, NZ Dollar Rises

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European stocks approached record highs on Wednesday after U.S. Federal Reserve officials soothed investors inflation worries, though the New Zealand dollar rose as the countrys central bank hinted at a rate hike next year.

European stocks were up 0.29, close to the previous days record peak, while Germanys DAX gained 0.2 and Britains FTSE 100 ticked up 0.17.

U.S. stock futures pointed to a higher open for the SP 500, also within sight of recent record highs. SP 500 eminis were up 0.29 after the index closed down 0.21. World stocks gained 0.1.

Richard Clarida, the Feds vice chair, said on Tuesday that the U.S. central bank would be able to curb an outbreak of inflation and engineer a soft landing without throwing the countrys economic recovery off track.

All the same, Claridas comments reflect a shifting tone at the Fed. A month ago, Fed Chair Jerome Powell said it was not yet time to even contemplate discussion of policy tapering, but more recently policymakers have acknowledged they are closer to debating when to pull back some of their crisis support for the U.S. economy.

Inflation is the key focus of our clients, companies are complaining about supply chain bottlenecks, employment shortages in the U.S., said Eddie Cheng, head of international multiasset portfolio management at Wells Fargo Asset Management, but he added

Our base case is the Fed is thinking this is transitory.

However in New Zealand, the central bank held interest rates at a record low on…

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