World markets fall after a difficult day on Wall Street

Hong Kong hang up seng (HSI) fell 2.5%, leading losses in the region. from Japan Nikkei (N225) it also fell almost 2%. from China Shanghai Composite Index (SHCOMP) it fell as much as 1.4% before reversing late in trading to close 0.4% higher.
In Europe, London FTSE100 (United KingdomX) fell by 2.4%, while Germany DAX (DAX) and from France CAC40 (CAC40) both lost around 2% in early trading.
The US stock market suffered a sharp sell-off on Wednesday as investors grew increasingly concerned about rising inflation and a potential recession. The Dow Jones Industrial Average (INDU) lost 3.6%, its worst trading day since June 2020. The S&P 500 (INX) sank 4% and the Nasdaq Composite (COMP.) skidded 4.7%.

Wall Street was poised to open lower on Thursday, with stock futures trading 1.3% to 1.6% lower.

A dire earnings report from the US retail giant Goal (CBDY) hit broader market sentiment on Wednesday. CEO Brian Cornell said buyers were concerned about “the high and persistent inflation they’ve been experiencing, particularly in food and energy.”
And the elevated inflation readings from the UK and Canada were “a reminder to markets that fighting inflation among central banks globally will be a challenging process,” said Jun Rong Yeap, market strategist at IG Group, Thursday.

“A rebound in Covid-19 cases in China appears to dampen earlier hopes for a quick easing in overall virus restrictions, which could contribute to market risk aversion,” it added.

The Chinese economy is likely to contract in Q2 as Covid lockdowns wreak havoc on activity. Consumer spending and factory output fell sharply last month, while unemployment rose to the highest level since the initial coronavirus outbreak in early 2020.
A top official in China tried once again on Thursday to lift the spirits of its huge tech industry. But markets remained deeply concerned about the growth prospects of the country’s big Internet companies.
Those concerns were reinforced Wednesday when Tencent (TCEHY) reported zero revenue growth in the first quarter, a worse-than-expected result. Tencent shares sank 6.5% in Hong Kong, marking their worst day in two months.
alibaba (slime) fell 7.4%, while jd.com (JD) and Meituan lost more than 3%.

“Despite recent reassurances put in place by Chinese authorities, the easing in China’s tech has proven short-lived so far as market participants await more concrete policy follow-through to restore long-term confidence.” Yep said.

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