Many stock markets tumbled!Higher oil prices!The White House “nervous” remarks triggered a wave of selling risk assets in financial markets

2022-06-03 0 By

All three major U.S. stock indexes ended the week in negative territory, weighed down by a combination of high inflation, rising geopolitical risks and sharply lower consumer confidence.The Dow is down about 1%, the S&P 500 is down 1.82%, and the Nasdaq is down 2.18%.U.S. inflation data again “extraordinary” concerns about the fed’s radical increases in interest rates, according to data released last week in January this year, cpi rose 7.5% in the us consumer price index, the largest year-on-year since February 1982, highlighting the U.S. inflation pressures continue to rise, will also further strengthen the financial markets of the fed to start raising interest rates expected in March.Markets are particularly worried about a one-off 50 basis point rise in March or an early announcement at the end of February.Goldman Sachs quickly raised its forecast for the Fed to raise interest rates seven times this year, up from the five it predicted half a month ago, in the light of another “off the charts” inflation data.This week, global investors will continue to keep a close eye on developments in Russia and Ukraine.Comments from the White House on tensions between Russia and Ukraine on Friday triggered a sell-off of risk assets in financial markets, sending oil prices higher and stock markets tumbling as investors bought safe-haven assets such as the dollar, yen, Swiss franc, U.S. Treasury bonds and gold.Bank of America analysis points out that forward p/e ratios for S&P 500 companies are still above their historical average, even as the recent sell-off in US stocks has taken some of the froth out of them.Us equities are expected to remain volatile amid persistent inflationary pressures and geopolitical factors.Also on investors’ radar this week will be U.S. Producer price data for January, due on Tuesday.Given the “off the charts” cpi in January and the recent rise in energy prices, it is widely expected that production costs on the supply side of the US will struggle to fall back.U.S. retail sales data for January on Wednesday will also influence risk appetite.Us retail sales plunged in December from the previous month. What about January?Investors will be gauging the impact of inflation and the pandemic on US consumer spending.Column editor: Gu Wanquan The author of this article: CCTV financial text editor: Dong Siyun Photo source: Visual China photo editor: Shao Jing