Rolling coverage of the latest economic and financial news
- Japan’s Nikkei falls 3% – worst day since February
- Yesterday, the tech-focused Nasdaq dropped 3%
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Stocks are sliding today as rising inflation worries, and a fall in tech stocks, send investors running for cover.
Some equity markets in the Asia Pacific are a mess today pic.twitter.com/35b7UBld14
This underperformance in the Nasdaq once again started to act as a drag on wider market sentiment as another disappointing close served to undermine confidence more broadly, and pull all US indices lower, though not before the Dow posted yet another record high.
Once again it has been concern about inflation that appears to be weighing on broader market sentiment, with commodity prices once again the major culprit, ahead of US CPI [consumer price inflation] numbers that are due out later this week.
Chinese internet stocks traded in Hong Kong are down over 30% from the peak. pic.twitter.com/A4vYBewbA5
The move in commodities has been there for all to see, and reports that China is hoovering up everything in the bulks space has resonated, with copper also on a charge – this has led to ever-higher inflation expectations, and despite a fall in real Treasury yields, talk of inflation is deafening.
Indications of labour shortages have the inflationist talking up the prospect of rising wage pressures, and another feedback loop to higher inflation.