Markets decline in anticipation of US inflation data: what you need to know in the morning
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Main news of foreign markets this morning.
0 American stocks fell on Tuesday
The S&P 500 lost 0.5%, the high-tech Nasdaq lost 0.6%, and the Dow Jones index fell 0.2%. Uncertainty regarding the economic situation in the USA remains, so that sentiments on Wall Street remain cautious.
The auctions took place on the eve of the publication of key data on the consumer price index in America for April. Analysts polled by Dow Jones predict that at the end of April inflation in the USA will be 0.4% compared to the previous month or 5% in annual terms.
Investors are also following the latest news on the US debt ceiling. The American authorities must come to an agreed decision by June 1 so that the country avoids default.
Wall Street warns the US authorities about the “unthinkable” consequences of default
Some of the most powerful people on Wall Street, including current and former executives from Goldman Sachs and JPMorgan, have warned of the “unthinkable” long-term consequences of a US default and believe that the national debt limit may have to be lifted forever.
The markets of the Asia-Pacific region are mainly declining
The broad index of Asian shares (excluding Japan) MSCI AC Asia ex Japan Index lost 0.4% today, Japan’s Nikkei fell by 0.4%, South Korea’s Kospi fell by 0.3%, China’s Shanghai Composite and Hong Kong’s Hang Seng fell by 1 % and 0.4%, respectively, and the Singapore STI practically did not change.
Investors in Asia also maintain a cautious attitude ahead of the release of fresh data on inflation in the United States. Market participants are concerned that if inflation does not show a significant slowdown, then interest rates will probably not be lowered this year.
The number of corporate defaults in the US has reached a record since 2010
According to S&P Global, since the beginning of 2023, the number of bankrupt American companies has reached 236, which is the maximum for the past 13 years, and also twice as much compared to 2022.
At the same time, 70 bankruptcy cases were filed in March, and 54 in April.
The last major companies to declare bankruptcy are: Whittaker, Clark & Daniels, Bed Bath & Beyond, LTL Management (a subsidiary of Johnson & Johnson) and SVB Financial Group.
The era of cheap money is coming to an end, and American companies are feeling the effects of high interest rates and high inflation, notes Reuters.
Author: 
Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency
- Shares (securities)
- Stock market
Source: Ministry of Finance
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