Inflation concerns worries investors, and the market drops again – Business Activities | Business

Good morning, and welcome to our rolling reports on the world economy, financial markets, the Eurozone and business.

Due to supply shortages and declining demand (unlocked), after US consumer prices jumped to much higher than expected in April, inflation concerns continue to plague the market today.

The news that the consumer price index rose 4.2% from the same period last year (the fastest since 2008) has intensified concerns about the possible overheating of the US economy.

Last night, Wall Street and Asia-Pacific stock markets triggered a decline in Wall Street after three consecutive days of declines.

Since the government’s package of programs has promoted consumer spending, and the extension of the supply chain has also triggered competition for raw materials, investors are worried that the Federal Reserve (Fed) believes that the increase in inflation may not be temporary.

This Dow Chemical A drop of 681 points, or 1.99%, was the worst period in a single day since January and only one day away from the biggest drop since February.

The sell-off once again spread to the world, making Japan’s Nikkei Fell 2.5%, and Australia’s Standard & Poor’s/ASX 200 A drop of nearly 1% exacerbated the loss at the beginning of the week.

London is also starting to go downhill, FTSE The US$100 fell nearly 1%, wiping out yesterday’s mild recovery after Tuesday’s plunge.

However, some economists pointed out that as the economy gets rid of the constraints of the pandemic, inflation in the United States is driven by one-off factors, so this may be temporary.

The prices of used cars and trucks, housing and accommodation, air tickets, entertainment activities, car insurance, and furniture all drive up the CPI because the reopening of businesses creates temporary quirks in the data.

The new US producer price data and weekly unemployment benefits will expire today-this will give people a new understanding of the state of the world’s largest economy.

It takes time to determine whether inflation is temporary or permanent, so this problem will last for several months.

Jim Reid of Deutsche Bank It is predicted that both parties will be in constant turbulence, which will lead to frequent fluctuations:

It is dangerous to read a number too much, but the powerful force makes us full of confidence, this is not just a short story. For us, another buzzword is how the market will “complicate” this year, especially once the reopening occurs. This version reflects this thought process.

You may experience a dull period, but this year is a massive reopening/stimulus measure bullish on the one hand, and inflation on the other hand, it will be a huge battle. Look forward to regular roll up pockets. I still rely heavily on the inflation camp, but the reality is that this struggle is still in its early stages, and non-inflationists will still be able to use the transition argument for several months.

Bitcoin After Elon Musk announced in a tweet that Tesla had suspended Bitcoin-based car purchases, he fell overnight, citing the environmental impact of mining cryptocurrencies.

Musk added that Tesla will not sell any bitcoins purchased earlier this year and intends to use bitcoins for transactions as soon as the mining industry uses them for more sustainable energy.

This caused Bitcoin to plummet-from more than $54,000 before Musk’s tweet to less than $46,000. Since then, the price has rebounded, reaching around US$51,000, but it has still fallen by more than 10% in the past 24 hours.

Other cryptocurrencies have also declined, including Ethereum and Dogecoin:

Agenda

• Daylight Saving Time (BST) 1.30pm: The number of weekly jobless claims in the United States
• 1.30pm Daylight Saving Time: US April Producer Price Inflation Report