US Markets Mixed After Inflation Bump, Bitcoin Hits Record Peak

Asian and European stock markets mostly rose Tuesday and the US was mixed at the open after a strong consumer inflation reading, while bitcoin powered to a record peak on the eve of a key IPO

London, (UrduPoint / Pakistan Point News - 13th Apr, 2021 ) :Asian and European stock markets mostly rose Tuesday and the US was mixed at the open after a strong consumer inflation reading, while bitcoin powered to a record peak on the eve of a key IPO.

The Dow Jones fell 0.5 percent and the tech-heavy Nasdaq added 0.7 percent, after the Labor Department said consumer prices added 2.6 percent in the 12 months to March.

"Equities just seem to be welcoming any kind of risk event being put in the rearview mirror," SPI analyst Stephen Innes commented.

With US markets looking ahead to corporate earnings data, "the key question is whether growth optimism will be replaced by inflationary concerns and taper tantrums" if the Federal Reserve moves to keep price growth in check, Fawad Razaqzada of Think Markets said.

"If we do now see more signs of the US economy heating up, then there could be a noticeable change in tone from the Fed," Razaqzada warned.

At the same time, "talks about corporate tax hikes to pay for the cost of stimulus" from Washington mean "things could unravel on Wall Street soon".

"All it takes is a few people to start selling to get the ball rolling," Razaqzada added.

Meanwhile in afternoon eurozone trading Paris and Frankfurt climbed, chasing much of Asia higher.

But London was down slightly despite news of Britain's advancing economic growth and rebounding EU exports in February.

European "optimism is largely being held in check as news on a pause in JNJ's single dose vaccine in the US has added a measure of caution," Charles Schwab analysts commented, referring to the stock symbol for Johnson & Johnson pharmaceuticals.