London: Friday’s stock market plunged further into the red after data showed that US inflation surged to its highest level in May’s 40 years, surpassing analysts’ expectations.
In Europe, all major stock indexes have fallen sharply to end the week.
Paris’s best-selling CAC 40 fell 2.7% on Friday, Frankfurt’s DAX index fell 3.1%, Milan’s FTSE MIB fell 5.1%, Madrid’s IBEX fell 3.7%, and London’s FTSE fell 2.1%. did.
On Wall Street, stocks have also moved into the negative territory after U.S. government data showed inflation reached 8.6% in May and consumer prices have skyrocketed since December 1981 against the backdrop of soaring energy and food prices. I went deep.
“The US Consumer Price Index is stronger than expected in May,” said Stephen Innes of SPI Asset Management. “Inflation is back to highs. The important thing is that it’s all over.”
The data were enthusiastically expected as investors were eagerly looking for clues about US interest rate directions at the Federal Reserve Board next week.
“Today’s announcement of the US Consumer Price Index underscores the need for monetary tightening policies,” said Fawad Razaqzada of Forex.com.
“This continues to put pressure on Nasdaq and other risk assets, weakening currencies and gold, as the Fed and others recognize the need for’stronger’ monetary tightening to cope with rising inflation around the world. It should support the US dollar against it, “he said.
Inflation is skyrocketing around the world, and the European Central Bank announced Thursday that it would raise interest rates, prompting it to finally join the Fed to tighten monetary policy.
Economists have warned that the surge in inflation caused by soaring energy prices could push top economies into recession.
In addition to anxiety, there was news that Chinese officials had re-locked millions of people for the Covid test due to another rekindling of the incident that hit expectations for a resumption of the economy. did.
“Weekly (US) unemployment claims are starting to rise, showing signs of economic warning. China’s Covid situation has been a nuisance to the supply chain over the next few quarters, and inflationary pressures have increased. , Because there are no signs of mitigation. ” Edward Moya, an analyst at OANDA Trading Group.
“Reducing global growth forecasts is likely to be a steady theme over the next few months, which should further complicate tightening from central banks,” he said.
Both the World Bank and the Organization for Economic Co-operation and Development lowered their forecasts for global economic growth earlier this week.
– Key figures around 1535 Greenwich Mean Time –
New York-Dow: down 2.5% at 31,476.37 points
London – FTSE 100: 2.1% down 7,317.52 (closed)
Frankfurt – DAX: 3.1% down 13,761.83 (closing price)
Paris – CAC 40: down 2.7% 6,187.23 (closing price)
EURO STOXX 50: down 3.4% at 3,599.20
Tokyo – Nikkei 225: 27,824.29, down 1.5% (closing price)
Hang Seng Index: Fall 0.3% at 21,806.18 (closing price)
Shanghai Composite: 3,284.83, up 1.4% (closing price)
Euro / Dollar: Fall from $ 1.0620 to $ 1.0516 late Thursday
Euro / Pound: rises from 84.98p to 85.37p
Dollar / yen: down from 134.40 yen to 134.15 yen
Pound / Dollar: Fall from $ 1.2495 to $ 1.2317
Brent crude: $ 121.48 per barrel, down 1.3%
West Texas Intermediate: $ 120.04 / barrel down 1.2%
