Hong Kong: As data showed that prices in the United States and China continued to soar, Wall Street’s record rally finally ended, inflation returned to the spotlight, and Asian stock markets fell on Wednesday.
Although the market—especially the U.S. market—has hit record highs in recent days and weeks, traders are still nervous about the steady stream of data that shows global inflationary pressures as supply chains get stuck and demand surges. Is intensifying.
In response, central banks have become more and more tough. Some central banks have raised interest rates and others have scaled back other large-scale financial support measures implemented at the beginning of the pandemic. These measures have been the key to the rise in global stock markets in the past 18 months.
On Wednesday, a report released by China showed that due to soaring energy prices and the blockade in parts of China, the price paid at factory entrances rose 13.5% year-on-year in October, reaching the highest level in more than 20 years. The virus broke out.
The data also shows that consumer inflation has risen further.
These readings will cause headaches for leaders as they work hard to prevent prices from getting out of control, but they will also provide support to the economy because the economic recovery has stalled under the pressure of the recent Covid outbreak.
The news on Wednesday came the day after the Labor Department stated that US wholesale prices were still high last month and observers said they may continue to rise this year. The consumer price index will be released later on Wednesday.
Drummatus of MetLife Investment Management told Bloomberg TV: “Because we haven’t seen inflation for a while, people are not used to it.”
“What we should expect in the next six months is-as people become more aware of the actions the Fed may take-we will see more volatility.”
Shanghai and Hong Kong led the decline, while Tokyo, Sydney, Seoul, Singapore, Seoul, Wellington, Manila and Jakarta also fell.
Investors are paying close attention to the development of China’s Evergrande legend. The troubled real estate giant faces a deadline on Wednesday and must pay interest on three bonds worth a total of US$148 million.
The company has fulfilled its obligations for the first two notes and successfully raised approximately US$144 million last week by cutting its stake in an Internet company.
However, there are still many concerns about whether the company’s deep debt crisis of more than 300 billion US dollars will affect the wider economy.
One day after hitting a record high of US$68,513, the price of Bitcoin was approximately US$66,900.