Global stocks slump on alarm over US inflation

World equities tanked Thursday as slowing US inflation didn’t dent fears of growing worldwide hobby costs and despatched oil fees diving on call for worries.

The European single currency sank to a January 2017 low at $1.0422 as the greenback turned lifted by using its haven repute.

Frankfurt, London, and Paris stock markets each sank more than two percent in midday deals after heavy falls in Asia and on Wednesday in the United States.

Panic-stricken investors also sent virtual unit bitcoin tumbling to the lowest level since late 2020 after a dramatic collapse in some stablecoin cryptocurrencies.

US inflation slowed to 8.3 percent in April after a four-decade peak of 8.5 percent in March, data showed overnight.

“While it will come as a relief that (US) inflation has finally peaked and the deceleration has started, the fact that it didn’t do so nearly as much as expected is just another cruel blow to households and the economy,” Oanda analyst Craig Erlam told AFP.

“Central banks are going to have to do more if (inflation) data does not drastically improve in the next few months.”

Investors had hoped the US consumer price data would lower pressure on the Federal Reserve to hike borrowing costs.

However, April’s reading eclipsed market expectations of 8.1-percent inflation.

Interest rates are being hiked worldwide to tackle decades-high inflation, which is fuelled mostly by rocketing energy costs.

London’s stock market was slammed Thursday also by news that the UK economy shrank in March on the fallout from soaring inflation, increasing the prospect of a recession — or two-quarters of contraction in a row.

The data sent the pound sliding to a May 2020 low at $1.2166.

World markets had been risky for an awful lot of 2022 as a result of China’s Covid-19 lockdowns, Russia’s invasion of Ukraine, and surging inflation weighing on purchaser sentiment.

US President Joe Biden called April’s common slowdown “heartening” — however acknowledged inflation was still a prime project.

“Bringing it down is my top economic priority,” he said.

London – FTSE 100: DOWN 2.1 percent at 7,195.76 points

Frankfurt – DAX: DOWN 2.0 percent at 13,550.53

Paris – CAC 40: DOWN 2.3 percent at 6,125.54

EURO STOXX 50: DOWN 2.2 percent at 3,567.30

Hong Kong – Hang Seng Index: DOWN 2.2 percent at 19,380.34 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,054.99 (close)

Tokyo – Nikkei 225: DOWN 1.8 percent at 25,748.72 (close)

New York – Dow: DOWN 1.0 percent at 31,834.11 (close)

Brent North Sea crude: DOWN 1.3 percent at $106.15 per barrel

West Texas Intermediate: DOWN 1.3 percent at $104.34 per barrel

Euro/dollar: DOWN at $1.0442 from $1.0513 at 2100 GMT Wednesday

Pound/dollar: DOWN at $1.2211 from $1.2251

Euro/pound: DOWN at 85.53 pence from 85.81 pence

Dollar/yen: DOWN at 128.58 yen from 129.97 yen