Selling pressure on global markets continues amid inflationary concerns

By Gokhan Ergocun

ISTANBUL (AA) - After the US, China, and Germany all announced high inflation on Wednesday, global stock exchange markets closed the midweek with mixed figures.

The US annual inflation rate hit 8.3% in April after posting the largest 12-month rise since December 1981 the previous month, while China’s annual inflation rate rose to 2.1% in April, up from 1.5% in March.

Germany's annual inflation was also at 7.4% in April, an all-time high for the second month in a row.

Following the data, expectations rose that global inflation could worsen in the coming months partially fueled by geopolitical uncertainties and pandemic measures in China.

Negative figures had the largest impact on the crypto market, with Bitcoin nearing the $27,000 level, hovering around its lowest level in 16 months.

The US' Nasdaq stock exchange fell 373 points, or 3.2%, to close at 11,364 on Wednesday's close.

The Dow Jones lost 326, or 1.02%, to finish at 31,834 points, and the S&P 500 fell 66 points, or 1.65%, to end the day at 3,935.

On the European side, Christine Lagarde, European Central Bank governor, said on Wednesday that the ECB’s first rate hike could take place in a few weeks after the end of the asset purchase program.

Following her statements, expectations that the bank will start interest rate hikes in July strengthened.

Major European stock exchanges closed the midweek with gains on Wednesday, including the STOXX Europe 600 (1.74%), the UK's FTSE 100 (1.44%), Germany's DAX 30 (2.17%), France's CAC 40 (2.5%), Italy's FTSE MIB (2.84%), and Spain's IBEX 35 (2.13%).

In Asia, pandemic measures continue to be a big concern.

Major Asian stock markets closed Wednesday mixed. The Asia Dow, Tokio's Nikkei 225, the Hang Seng and Chinese Shanghai indices rose, while the Indian Sensex benchmark and the Singapore index dropped at close.

Turkiye's Borsa Istanbul BIST 100 index alslo closed Wednesday down 1.45% to 2,453.94 points.