Global Markets Tumble as China's Economic Data Spurs Concerns, US Inflation Fears Loom
Summary:
Asian and European stock markets experienced significant losses on Friday. China led the downturn due to its stagnant consumer price index for September, forecasting a slowed economic outlook. European shares also fell due to concerns about potential interest rate increases prompted by U.S inflation data. Share indices in China, Japan, and South Korea also saw a decline, while London's FTSE 100 and the pan-European Stoxx 600 index ended the week lower despite previous gains.
Asian and European equity markets suffered major losses on Friday, with a stagnation in China's September consumer price index leading the downturn. Financial analysts are warning that poor economic readings from China could pose a risk for the global economy. European shares also dipped on Friday owing to worries sparked by U.S inflation data, which hinted at a potential rise in interest rates. Rising inflation could compel the Federal Reserve to retain its prime interest rate at elevated levels over a longer span to counter inflation, an approach that has sent ripples of unease amongst investors, as seen in today's share market outcome.
The promising rally of Asian equities came to an abrupt halt at the week's end with shares in China, Japan, and Hong Kong falling after China reported a lower than predicted consumer price index, indicating a slowing economic outlook for the world's second-largest economy. China has also witnessed a 2.5% decrease in its producer price index. Meanwhile, China's essential CSI 300 index declined by 1.05%, settling at 3,663.41.
In Hong Kong, the key Hang Seng Index fell by 2.3%, ending a six-day streak of gains.
In Japan, the country's leading index, Nikkei 225, fell by 0.6% closing at 32,315.99 whereas South Korea's Kospi fell by 0.95%, ending the day at 2,456.15.
European shares took a hit as concerns about the Fed's possible interest rate increases and worries about economic growth put pressure on the markets. The London's key FTSE 100 Index dipped by 0.3% in spite of a surge in oil prices. Oil companies like BP and Shell have a substantial impact on London's main index. The pan-European Stoxx 600 index also recorded a 0.6% decrease, wrapping up the week on a low note following three successive days of gains.
Published At
10/13/2023 1:44:00 PM
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