Wall Street markets climb as inflation fears deepens

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Wall Street markets climb as inflation fears deepens

The stock markets climbed Friday at the end of a week, dominated by inflation concerns.

The US currency benefited from Federal Reserve rate increase expectations because of a rising inflation in the world's biggest economy, with the euro falling to a 15 month low.

The European economy's biggest economy Germany on Friday added to inflationary concerns as the data showing rising costs in the number two economy China.

Joshua Mahony, senior market analyst at IG trading group, said we have seen a fresh reminder of the underlying inflationary pressure on businesses and consumers after German wholesale selling prices reached 15.2 percent year-on-year.

The dollar gained ground as a result of recent Chinese and US inflation readings. The fact that German wholesale prices had reached the highest level since 1974 shows that European businesses are under the same price pressures experienced in the US and China Markets, which is looking to see if the global inflation spurt will ease as supply chain disruptions and wage hikes normalise.

A better- than expected earnings season - which came despite the jump in prices - has given confidence that the economic recovery remains on track.

In the coming months, inflation could remain elevated, and each inflation release that comes above expectations has a potential to cause volatility in rate and equity markets, but we still don't expect inflation to derail the equity rally, said Mark Haefele at UBS Global Wealth Management.

The dollar has a four-year high against the euro this week, and they saw a healthy run-up against the British pound.

Two of the world's biggest companies announced major restructuring plans on Friday in Losewhere.

Johnson Johnson said it would split into two companies, one focused on its pharmaceutical operations and the other on consumer goods.

The company would be split into three companies following a campaign by investors to boost the firm's shares after a period of enormous upheaval.

The plan approved by the board will force two companies off from the rest of Toshiba's operations within two years - one focused on infrastructure and the second on devices - with both eventually being listed.

New York - Dow: DOWN: 0.4 percent at 35,921. The Brent North Sea crude: DOWN 1,6 percent at $81.51 per barrel

West Texas Intermediate: DOWN 2,1 percent at $79.90 per barrel