The stock market has plummeted in Europe and Asia following the decline of Wall Street, while technology continues to be plagued by worries of rising economic prices leading to central banks setting monetary policy.
The European index of the Stoxx 600 is down 1.7% on the morning trend, markets in Germany and France are down by similar limits. London’s FTSE 100 fell by 2%. The falls came after the American stock market Nasdaq Composite dropped by 2.6% on Monday.
Technical stocks endured the toughest sales in Europe on Tuesday, with the Stoxx 600 tech index lowering 2% down. Any other large group of companies was also low on the day, according to Refinitiv’s findings.
The move came ahead of US inflation on Wednesday which is expected to show consumer prices rose 3.6% in April compared to the same period last year, by 0.2% compared to March 2021. up by 0.3% from last month. Financial officials at Citigroup are anticipating a rise in used cars, traffic and hotel prices to boost the index.
Tuesday’s report showed that China’s car prices, an indication of which foreign buyers and expatriates pay for goods, rose three years to 6.8% last month, year on year.
Hang Seng of Hong Kong closed more than 2% down and Nikkei 225 of Japan closed the Tokyo sales share by more than 3%.
Jay Powell, chairman of the US Federal Reserve, is he promised continuing $ 120bn from the central bank’s monthly purchasing bank which has boosted markets through the epidemic until the recovery process becomes clear.
Advertisers, however, are anticipating a time when Money may be forced to change its mind, which has been difficult after the central bank he corrected its inflation management last year acknowledged the temporary explosion of high prices.
“We expect that the economic growth this year, and coming as a result of inflation, will encourage economists to have a more optimistic view of monetary policy,” experts at Capital Economics responded in a survey.
Retirement does not simply bring the opportunity for central banks to withdraw aid from the market. It also undermines the restoration of sustainable security as state-owned enterprises, causing their prices to fall and harvest to rise. The yields on the US Treasury bond describe how the cash flows are based on future income from the commodity. The researchers say this is especially important in the technical markets, which has risen sharply during the epidemic and their comparisons have been boosted by lower interest rates.
Sections in many papers on Wall Street have begun to recede. Cathie Wood’s Ark, a company that owns shares in companies like Tesla, is about to run out Wednesday since its peak in February, when some volatile market areas such as non-profit companies and groups that have been exposed to bitcoin price changes have stumbled.
Yields on the 10-year US Treasury estimate were stable at 1.608% on Tuesday but have risen from about 0.9% earlier this year.
Not all experts know the future of the business, while some feel that inflation in the US will come soon because consumer demand stabilizes and reverses barriers to corporate closure last year.
“While women have been concerned about the recent rise in inflation, we hope that short-term inflation may be temporarily unaffected by continuous inflation,” said Andrea Bevis, vice president of UBS’s financial management.
He noted, however, that “economists need to differentiate themselves beyond the high-tech companies and transform them into market-oriented areas”, such as electronics manufacturers and retail groups, “who need to continue to benefit from higher yields and grow economic resilience”.