Stocks Plunge as Nerves Fray Before US Inflation Data
Stocks stumbled on Wednesday as investors became increasingly anxious ahead of the release of U.S. consumer price data due later in the day. The dollar was firm, suggesting that traders were expecting inflation to remain elevated and could be a sign that interest rate cuts may not occur this year as previously anticipated.
Analysts have warned that if inflation does not show any signs of slowing down, it could lead to further market volatility and put downward pressure on stock prices across Asia and beyond. This would likely result in increased uncertainty for investors who are already feeling uneasy about global economic growth prospects after a series of weak economic indicators from around the world over recent weeks.
The release of today’s US CPI figures will therefore be closely watched by markets with many analysts predicting a muted response regardless of what they reveal given current market conditions; however, there is still potential for some significant movement depending upon how much or little inflation has cooled since last month’s reading which showed an increase compared to May 2018 levels.Read more at Reuters