NEW YORK, June 11 — Global equity markets slumped and the dollar strengthened yesterday after a bigger-than-expected US inflation spike in May raised concerns the Federal Reserve may tighten policy for too long and cause a sharp slowdown.
“It was pretty hot. This report suggests that underlying inflation pressures remain quite strong,” said Aichi Amemiya, senior US economist at Nomura. The pan-European STOXX 600 index fell 2.69 per cent and MSCI’s gauge of global equity markets shed 2.79 per cent. The stronger-than-expected CPI data has changed the calculus for what the Fed does in September after “most assuredly” raising rates 50 basis points next week and in July, said Art Hogan, chief market strategist at National Securities.
The Fed still has a chance of engineering a softer landing as there’s mounting evidence a slowdown is happening, said Rhys Williams, chief strategist at Spouting Rock Asset Management. The yen has been plumbing 20-year lows against the dollar and seven-year troughs against the euro on expectations the BOJ will continue to lag other major central banks in exiting its stimulus policy.The dollar index rose 0.852 per cent, with the euro down 0.9 per cent to US$1.0519 .Continued strong buying by foreign investors and cautious hopes of regulatory easing on tech firms lifted China stocks, despite lockdown alerts.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: malaymail - 🏆 1. / 86 Read more »
Source: malaymail - 🏆 1. / 86 Read more »