TOKYO (AP) – Global stocks were mostly down on Wednesday, following a decline on Wall Street as investors weighed in on the latest quarterly earnings reports for large U.S. companies and data pointing to rising inflation.
The French CAC 40 lost 0.2% to 6,544.96 at the start of the session, while the German DAX lost nearly 0.2% to 15,765.96. The UK FTSE 100 slipped 0.4% to 7,094.19. The future of Dow industrials slipped 0.2% to 34,729.00. The S&P 500 future edged down 0.1% to 4,357.30.
Japan’s benchmark Nikkei 225 lost 0.4% to 28,608.49. The Australian S & P / ASX 200 added 0.3% to 7,354.70. South Korea’s Kospi slipped 0.2% to 3,264.81. The Hong Kong Hang Seng fell 0.6% to 27,787.46, while the Shanghai Composite fell 1.1% to 3,528.80.
“This backdrop of higher and longer US inflation, a faster rising Fed and a stronger US dollar is not a good recipe for emerging Asia,” said Robert Carnell. , regional head of Asia-Pacific research at ING, referring to the US currency.
Another concern is the surge in coronavirus cases in Indonesia, Malaysia and Thailand, he said. South Korea is also seeing cases jump. He released data showing an improvement in the unemployment rate, but the numbers were collected before pandemic restrictions were tightened.
Parts of Japan are also seeing an increase in COVID-19 infections, stoking fears about the tens of thousands of athletes, dignitaries and others from some 200 countries entering the country for the Tokyo Olympics. Tokyo recently recorded hundreds of new cases, with 1,149 cases reported on Wednesday.
Some experts say it could rise to thousands in the coming weeks as ‘bubble’ conditions for Olympians have been compromised, with staff and athletes testing positive for the virus. The Games open on July 23.
Investors got another glimpse of how inflation continues to show up in the economy as rapidly surging consumer demand and supply constraints translate into higher prices for consumer goods.
The latest report from the US Department of Labor showed another increase in consumer prices in June that surprised economists. Prices rose the most in 13 years, prolonging a wave of higher inflation that raised fears on Wall Street that the Fed would consider withdrawing its low interest rate policies and cutting its bond purchases earlier than planned.
Much of the increase in the prices of goods, such as used cars, is mainly related to increased demand and lack of supply. Prices for many items, such as lumber and other raw materials, fall or will fall as suppliers ramp up their operations, said Jamie Cox, managing partner of Harris Financial Group.
In energy trading, benchmark US crude fell 50 cents to $ 74.75 a barrel in electronic trading on the New York Mercantile Exchange. He earned $ 1.15 to $ 75.25 on Tuesday. Brent crude, the international standard, fell 41 cents to $ 76.08 a barrel.
In currency trading, the US dollar fell to 110.51 Japanese yen from 110.61 yen. The euro cost $ 1.1783, compared to $ 1.1774.
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