Global markets fall after tough week on Wall Street; the yen hits its lowest level in two decades

The Dow (UNDUE) plunged 880 points, or 2.5%, on Friday. The S&P500 (SPX) lost 2.7% and the Nasdaq (NDX) down about 3%. The US consumer price index rose 8.6% in May, raising fears that Federal Reserve will have to act even more aggressively to try to control price increases.
The shockwaves were felt hardest in Asia on Monday. from Japan Nikkei (N225) closed down 3% and the yen weakened to its lowest level in more than 20 years. The Japanese currency has fallen rapidly in recent months due to a strong greenback and Japan’s ultra-loose monetary policy.

Japan’s central bank and government warned in a rare joint statement on Friday that they were concerned about steep declines, suggesting potential intervention by Tokyo to stem the decline.

The yen was not the only Asian currency to experience a sharp drop. The Indian rupee fell to an all-time low of 78.2 against the US dollar at the start of trading.

Elsewhere in Asia, Hong Kong Hang Seng (HSI) fell 3.4% on Monday. The Korean Kospi fell 3.5%. China Shanghai Composite (SHCOMP) was down 0.9%.
In Europe, France CAC 40 (CAC40) fell 2.47% in early trade, while Germany DAX 30 (DAX) was down 2.3%. The FTSE100 (UKX) slipped 1.8%, while the pound slipped to $1.22 after new data showed that British economy contract for a second consecutive month in April.

In the United States, Dow futures were down 1.9% at 5:20 a.m. ET. S&P 500 futures were down about 2.3%, while Nasdaq futures were down about 2.9%.

“Friday’s hangover from US CPI data is not helped by concern that China will reverse some of its economic reopening, or more dire economic data in the UK,” Kit said. Juckes, Societe Generale strategist, in a research note.

A number of Shanghai neighborhoods faced another temporary lockdown this weekend as authorities launched mass testing just days after Covid restrictions were eased for most of its 25 million residents. inhabitants.

Authorities in Beijing’s largest district of Chaoyang announced the closure of all entertainment venues on Thursday, just days after allowing them to reopen.

– CNN’s Nicole Goodkind contributed to this report


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