PAIN AGAIN GLOBAL SHARES TUMBLE FURTHER AMID RENEWED CONCERNS OVER US INFLATION
Jim Armitage
GLOBAL stock markets endured another bruising today amid fears inflation could start galloping away in the US.
The FTSE-100 tumbled more than
2%, losing 169.11 to 6835.23, with markets in Europe suffering similar pain.
Investors are increasingly worried central banks will increase interest rates or rein back on quantitative easing if prices continue to overheat. Wall Street fell sharply after Europe closed last night following data showing US inflation jumped to 4.2%.
UK inflation expectations are currently at their highest levels since 2008.
Stock markets are spooked because if interest rates rise, investors will shift from shares to less risky assets like bonds which have hitherto been bearing hardly any interest.
Calmer heads say inflation is temporary and the Federal Reserve will not move until it sees more proof the job market has receovered.
Business
en-gb
2021-05-13T07:00:00.0000000Z
2021-05-13T07:00:00.0000000Z
https://eveningstandard.pressreader.com/article/282239488511037
Evening Standard Limited