Global stock markets are falling as inflation and economic worries remain

Global stock markets are falling as inflation and economic worries remain

That flagship global index is nearly 20% lower for the year. The Dow Jones Industrial Average fell 103.81 points, or 0.33%, to 31,730.3, the S&P 500 lost 5.1 points, or 0.13%, to 3,930.08 and the Nasdaq Composite added 6.73 points, or 0.06%, to 11,370.96. The dollar climbed to a 20-year high, as global economic fears boosted its safe-haven appeal. The dollar index rose 0.711% after touching 104.92, its highest since Dec. 12, 2002. The euro was down 0.02% to $1.0377 after falling to 1.0352, its lowest since Jan. 3, 2017.

On Thursday, global shares slumped to an 18-month low, as investors worried that high inflation would endure, forcing central banks to continue tightening monetary policy. Stocks in the United States closed a choppy session marginally lower, as investors juggled concerns over lingering inflation with evidence that it may be peaking. Since plunging from its all-time high in January, the S&P 500 has come dangerously close to confirming a bear market. A German warning that Russia was now using energy supply as a “weapon” heightened economic concerns in Europe. The STOXX 600 index was down 0.75 percent across Europe. As of 5:09 p.m. ET, the MSCI global stock index was down 0.69 percent (2109 GMT).

Oil prices settled mixed on supply fears due to the pending European Union ban on Russian oil. Brent crude fell 6 cents to settle at $107.45 a barrel. WTI crude rose 42 cents, or 0.4%, to settle at $106.13. The U.S. Labor Department said the producer price index for final demand rose 0.5% in April, slower than the 1.6% surge in March, as rising costs of energy products moderated.

Consumer price gains slowed to an 8.3% rise in April year-on-year from the 8.5% pace of March, but exceeded the 8.1% economists had forecasts. “It has been a punishing time for financial assets since the Fed raised rates … and the subsequent strong US jobs market, and CPI data have reinforced concerns over the extent of the task facing the Fed,” analysts at ANZ bank wrote.

The main pan-Asia Pacific indexes closed down 2.5% at a 22-month low overnight. Japan’s Nikkei fell 1.8. Emerging market stocks lost 2.28%. U.S. Treasury yields slid. The yield on 10-year Treasury notes US10YT=RR was down 7.1 basis points to 2.843% after the benchmark U.S. government bond fell to a morning low of 2.816%. Germany’s 10-year yield, the benchmark for Europe, fell as much as 15 bps to 0.85%, its lowest in nearly two weeks.

The rout continued in cryptocurrency markets, with the collapse of the so-called stablecoin TerraUSD; selling in bitcoin and a 15% slump in the next-biggest-crypto, ether . nL3N2X337U] Tether, currently the world’s largest stablecoin by market cap with a value directly tied to the dollar, broke below its so-called U.S. dollar “peg.” The global sell-off has now wiped more than $1 trillion off crypto markets. Around 35% of that loss has come this week.

“The collapse of the peg in TerraUSD has had some nasty and predictable spillovers. We have seen broad liquidation in BTC, ETH and most ALT coins,” said Richard Usher, head of OTC trading at BCB Group, referring to other cryptocurrencies. Precious metals also dropped. Spot gold fell 1.7% to $1,821.52 an ounce. U.S. gold futures fell 1.64% to $1,823.80 an ounce.

Benchmark copper on the London Metal Exchange (LME) was down 3.6% at $9,000 a ton in official trading after falling as low as $8,938. Prices are down 17% from a record high of $10,845 reached in March.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Amazon has now deepened melancholy for battered e-commerce stocks
Amazon has now deepened melancholy for battered e-commerce stocks
Etsy Inc., Wayfair Inc. and Shopify Inc. are hurtling toward earnings reports this week in the shadow of Amazon’s worst selloff since 2006. The tech giant ...
Thunderous is currently working on four new SteamWorld games
Thunderous is currently working on four new SteamWorld games
Thunderful has said that it plans to release as many SteamWorld games in next two years as it has in the last nine. The webcast, which will start at noon ...
Possible iOS release date for Poppy Playtime Chapter 2
Possible iOS release date for Poppy Playtime Chapter 2
Similar to how players felt when they first played through Chapter 1, some are wondering if MOB Games is going to port Chapter 2 to iOS. As of writing, there ...
Vodafone attack confirmed by UAE telecom group
Vodafone attack confirmed by UAE telecom group
The Abu Dhabi-based group, which has created a special holding company, Atlas 2022, to control the Vodafone stake, said it planned to be a “long-term and ...
Google Wallet for Android aims to be your main wallet
Google Wallet for Android aims to be your main wallet
Google is switching up how payments work on Android again, and the exact experience will vary by country. In the United States and Singapore, the tap-to-pay ...
On Android, RainViewer 2.16 included all-new widgets
On Android, RainViewer 2.16 included all-new widgets
RainViewer 2.16: all-new weather widgets for Android The new RainViewer 2.16 version presented the revamped weather widgets, with the support of the Material ...
US Existing Home Sales Fall for Third Straight Month;  record house prices
US Existing Home Sales Fall for Third Straight Month; record house prices
Economists polled by Reuters had forecast sales declining to a rate of 5.65 million units. Sales rose in the Northeast and Midwest, but fell in the South and ...
In June, the Future Games Show will return
In June, the Future Games Show will return
“We’ve featured over 200 games across six events since our debut show in June 2020,” says Daniel Dawkins, content director of games at Future. “Including ...
With a High-Octane Montage, Sony Japan promotes the PS5 and PS4 lines
With a High-Octane Montage, Sony Japan promotes the PS5 and PS4 lines
The clip shows numerous releases already available for Sony’s consoles, including Horizon Forbidden West and Gran Turismo 7. It does linger on a couple of ...
There is now $277 million in unallocated bond money in schools
There is now $277 million in unallocated bond money in schools
Guilford County Schools has had $300 million to repair, rebuild, and build schools over the past 18 months. So, how did the school board spend the $300 ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo