ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,206
7124hr
Pakistan Cases
1,223,841
2,58024hr
4.69% positivity
Sindh
450,126
Punjab
421,800
Balochistan
32,757
Islamabad
104,114
KPK
171,072
Markets

Stocks sink on inflation woes, as bitcoin plunges

  • London equities shed 1.1 percent by midday as official data showed a spike in UK inflation in April.
19 May 2021

LONDON: European stock markets sank Wednesday on soaring inflation numbers, while bitcoin took another tumble after China's central bank said cryptocurrencies cannot be used for payments.

Oil prices slid on reports of a possible breakthrough in nuclear talks with key crude producer Iran -- and a rise in value by the dollar against other major currencies.

London equities shed 1.1 percent by midday as official data showed a spike in UK inflation in April.

Frankfurt dived 1.3 percent and Paris lost 1.1 percent in early afternoon eurozone trade, after losses earlier in Asia and overnight on Wall Street.

"European markets are trading sharply lower on Wednesday, after a late sell-off on Wall Street," noted OANDA analyst Sophie Griffiths.

"Inflation fears continue to haunt the markets," she warned.

Britain's official consumer prices index hit 1.5 percent in April, the highest since the start of the Covid-19 pandemic in March 2020.

The data stoked jitters over a global surge in prices as economies reopen, and came one week after news that US inflation had shot up to 4.2 percent in April.

Eurozone data meanwhile confirmed Wednesday that inflation in the bloc rose to 1.6 percent last month.

Asian equities also fell Wednesday as investors struggled to break out of a long-running cycle of volatility, with optimism over the economic recovery playing off against fears about rising prices.

Focus is back on the impact that an expected burst of economic activity this year will have on inflation, which many warn could force central banks -- particularly the Federal Reserve -- to wind back ultra-easy monetary policies, including possibly hiking interest rates.

Traders will be closely reading through the minutes of the Fed's April meeting when they are released later Wednesday, hoping for an idea about the board's thoughts on its response to rising prices.

Energy firms were among those leading the losses as oil prices fell from recent peaks following reports that there had been progress on talks to bring the United States and Iran back into the 2015 nuclear deal.

"A positive outcome here would pave the way for increased oil supply from Iran," explained National Australia Bank analyst David de Garis.

Bitcoin meanwhile tumbled to $38,571 -- the lowest level since early February -- after China said digital currencies could not be used in markets as they were not real, adding that firms were not allowed to use the units to price their goods or services.

Bitcoin has had a torrid time of late, taking a hit after tycoon Elon Musk appeared to suggest Tesla was planning to sell its huge holdings of the unit, which came days after his electric carmaker said it would stop accepting it in transactions because of environmental concerns.

The currency is down about 40 percent from its record high close to $65,000 touched in April and analysts have warned it could fall as far as $30,000.

Key figures around 1100 GMT -

London - FTSE 100: DOWN 1.1 percent at 6,960.63 points

Frankfurt - DAX 30: DOWN 1.3 percent at 15,190.18

Paris - CAC 40: DOWN 1.1 percent at 6,286.84

EURO STOXX 50: DOWN 1.3 percent at 3,954.24

Tokyo - Nikkei 225: DOWN 1.3 percent at 28,044.45 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,510.96 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

New York - Dow: DOWN 0.9 percent at 34,060.66 (close)

Euro/dollar: DOWN at $1.2212 from $1.2222 at 2115 GMT on Tuesday

Pound/dollar: DOWN at $1.4162 from $1.4189

Euro/pound: UP at 86.25 pence from 86.14 pence

Dollar/yen: UP at 109.24 yen from 108.90 yen

Brent North Sea crude: DOWN 1.5 percent at $67.65 per barrel

West Texas Intermediate: DOWN 1.7 percent at $64.40 per barrel

Comments

Comments are closed.