Global stocks fell on investors’ fears of inflation


Equities across Europe and Asia-Pacific declined on Thursday after Wall Street spread to stock markets around the world in the previous session.

Europe’s Stokesx 60000 index fell 0.8 percent in early trading, while the UK’s FTSE 100 fell 1.3 percent.

Japan’s losses for the week fell 1.5% to 4.4 percent. China’s CSI 300 Shanghai index and Shenzhen-listed stock both fell 1.2 percent. Other major churches in Asia were also red.

The losses came after US government data showed Inflation rose to 4.2 percent Prices rise faster than economists predict each year in April.

Read spooked market, With the S&P 500 down 2.2 percent from the worst ODI performance on the Wall Street benchmark since February.

Stable high inflation prospects and debt can frustrate the market as it lowers real income by paying dividends or fixed-interest payments, sending stock and bond prices lower.

Yields in U.S. 10-year Treasuries, which went up against its price, fell 1.674 percent before the first European session on Wednesday during New York trading, down 0.03 percentage points.

Wednesday’s data also fueled speculation that the world’s Federal Reserve, the world’s most powerful central bank, could speed up its timeline to cut $ 120 billion in bond purchases that have been supporting financial markets since last March.

A senior Federal Reserve official said inflation was at risk this week.Temporary encouragement

“The Fed’s insistence that inflation is only a transitory audience,” said So Hui, chief Asia market strategist at JPMorgan Asset Management. “But if inflation data doesn’t calm down in the next few months, the challenge to its credibility could be disrupted.”

Tech stocks suffered heavy losses in the United States, Nasdaq II. cent percent decreased. They were also weakened in Europe and Asia. Online locked families online shopping and socialization have increased the value of this sector during the epidemic, but now it seems to be particularly vulnerable to market correction.

In Hong Kong, both Tencent and Alibaba fell more than 2 percent. Softbank Post of Tokyo-listed technology company drops 2.7 percent Record maximum profit A day earlier, the stock’s technology sub-index for the Japanese company fell 1 percent.

Taiwan’s technology-heavy Thai index fell 3.4 percent before most of the losses were offset. There are also country standards Suffer this week In the resurrection of Kovid-19

The US inflation data came a time later worldwide Commodity prices have jumped, Due to strong demand and strong supply. Investors see these as a hedge against inflation. Iron ore The price hit a record high against the dollar on Monday.

Rising prices push China’s manufacturing price index – a measure of inflation at the factory gate – towards it Highest level in three years In April, though, the country’s consumer price index growth remained below 1 percent.

Most products, including iron ore and crude oil, declined on Thursday. International oil benchmark Brent crude fell 1.4 percent to 6.33 a barrel. The Colon Colonial Pipeline in the United States, which transports fuel across the country, Activities have resumed After being shut down last Friday by a cyber attack on Wednesday.

Gold rose 0.2 percent to 8 1,819.76 per troy ounce.



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