Inflation fears intensify with soaring US prices
gHello. We’ll get UK growth data in March at 7 a.m., complementing the Office for National Statistics estimates for the first quarter of the year.
The consensus is for a decline of 1.7% quarter on quarter, showing that the UK economy has returned to a contraction amid widespread restrictions. However, the decline will be much smaller than initially feared.
Along with the growth we will also get trade data, which should show a continued recovery in UK exports in March.
Later, however, is the big event: US inflation data, which will confirm whether the world’s largest economy is warming at a rate fast enough to cause concern.
5 things to start your day
1) The threat of inflation triggers a liquidation of global stock markets: The FTSE 100 drops 175 points as investors today await crucial US price data as the world’s largest economy fears overheating.
2) New concern regarding the HS2 stage to Leeds: Campaigners urged the Prime Minister not to abandon a high-speed rail link to Leeds after the Queen’s speech raised new fears that it could be scrapped.
3) Activists sue government over North Sea oil and gas drilling: Climate activists have launched a battle in the High Court against the government for its support for oil and gas drilling in the North Sea.
4) Goldman banker ‘quits after making millions with Dogecoin’: Aziz McMahon resigned after taking advantage of the meteoric growth of digital currency joke this year, surpassing that of any other cryptocurrency.
5) How Hitachi’s plan to replace the UK’s train fleet derailed: The cracks found on the Japanese company’s Azuma trains are the latest in a litany of problems.
What happened overnight
Asian stocks fell for a second consecutive session on Wednesday to a one-month low, as investors speculated that soaring commodity prices and mounting inflationary pressure in the United States could lead to earlier hikes in rates and prices. higher bond yields globally.
The largest MSCI index of Asia-Pacific stocks outside of Japan fell 0.5%, after falling 1.6% on Tuesday to its largest daily percentage decline since March 24.
At 682 points, the regional index is not too far from a record high of 745.89 reached in February and is still up 3% this year so far, in addition to a 19% jump in 2020 and an increase of almost 16% in 2019.
Chinese stocks opened in the red, with a blue chip index of 0.2%.
Australian stocks slipped 0.6 pc while South Korea’s KOSPI index slipped 0.7 pc. Japan’s Nikkei canceled the initial gains to retreat 0.4%.
Analysts, however, doubted the sale would extend much further in a world of easy accommodating politics and budget largesse.
Business: Investec (Full year); Compass Group, Tui, Airtel Africa (Intermediate results); Coca-Cola HBC, National Express, Marshalls, TI Fluid Systems, Spirax- Sarco (Commercial update)
Economy: Trade balance, industrial, manufacturing and construction production, GDP (UK), consumer price index (Ger), industrial production (EU)