Stocks Mostly Fall As Inflation Concerns Return To Fore

Stock markets mostly fell Wednesday as concerns about high inflation returned to the fore and consumer prices in the United States and China continue to surge

London, (UrduPoint / Pakistan Point News - 10th Nov, 2021 ) :Stock markets mostly fell Wednesday as concerns about high inflation returned to the fore and consumer prices in the United States and China continue to surge.

European indices took their cue from losses in Asia after a record-breaking run higher on Wall Street came to an end on Tuesday.

London was a rare riser, helped by a surge in the share price of British broadcaster ITV, which forecast record advertising revenues.

Bitcoin was sitting around $67,000, a day after hitting a record high of $68,513.

"Another slow start for European trade comes off the back of a Asian session dominated by fears around the seemingly insatiable inflation pressure being felt by manufacturers," said IG trading group analyst, Joshua Mahony.

While markets -- particularly in the United States -- have chalked up all-time highs in recent days and weeks, traders remain nervous about the constant stream of data showing global inflationary pressures building as supply chains are snarled and demand spikes.

In reaction, central banks have turned increasingly hawkish, with some raising interest rates and others paring back vast support measures put in place at the start of the pandemic, which have been key to the rally in world equities for the past 18 months.

On Wednesday, China released a report showing the prices paid at factory gates had jumped 13.5 percent on-year in October to their highest level in more than two decades owing to soaring energy prices and as supplies were hit by coronavirus lockdowns in parts of the country.

The figures also showed a further pick-up in consumer inflation.

The readings will cause a headache for monetary policymakers as they fight to prevent prices from running out of control, but also provide support to the economy as recovery stutters under pressure from the recent Covid flareups.

On Tuesday, the US Labor Department had said that wholesale prices remained elevated last month and observers said the advances would likely continue this year.

The US consumer price index is released Wednesday.

- Key figures around 1115 GMT - London - FTSE 100: UP 0.5 percent at 7,311.75 points Frankfurt - DAX: DOWN 0.1 percent at 16,025.64 Paris - CAC 40: DOWN 0.2 percent at 7,028.65 EURO STOXX 50: DOWN 0.1 percent at 4,339.56 Tokyo - Nikkei 225: DOWN 0.6 percent at 29,106.78 (close) Hong Kong - Hang Seng Index: UP 0.7 percent at 24,996.14 (close) Shanghai - Composite: DOWN 0.4 percent at 3,492.46 (close) New York - Dow: DOWN 0.3 percent at 36,319.98 (close) Euro/dollar: DOWN at $1.1561 from $1.1594 at 2150 GMT Pound/dollar: DOWN at $1.3519 from $1.3558 Euro/pound: UP at 85.51 pence from 85.49 pence Dollar/yen: UP at 113.16 Yen from 112.87 yenBrent North Sea crude: DOWN 0.1 percent at $84.68 per barrelWest Texas Intermediate: DOWN 0.6 percent at $83.69 per barrel