July 2, 2022

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Former labor secretary on how Biden administration can combat inflation

Global markets drop after tough week on Wall Street; The yen fell to its lowest level in two decades

The daw (INDU) Fell 880 pips or 2.5% on Friday. The Standard & Poor’s 500 (SPX) cast 2.7% and Nasdaq (NDX) It decreased by about 3%. The US Consumer Price Index rose 8.6% in May, raising concerns that Federal Reserve It will have to act more aggressively to try to tame the price hike.
The feeling of the shock waves was most acute in Asia on Monday. Japan Nikki (N225) It closed down 3%, and the yen fell to its lowest level in more than 20 years. The Japanese currency has fallen rapidly in recent months due to the strong dollar and extremely loose Japanese monetary policy.

The Bank of Japan and the government warned in a rare joint statement on Friday that they are concerned about sharp declines, indicating possible intervention by Tokyo to stem the decline.

yen It was not the only Asian currency that experienced a sharp decline. The Indian rupee fell to an all-time low of 78.2 against the US dollar in early trade.

Elsewhere in Asia, Hong Kong Hang Seng (HSI) It fell 3.4 percent on Monday. Korea’s Kospi index fell 3.5%. China Shanghai boat (schcombe) It decreased by 0.9%.
in Europe and France CAC 40 (CAC 40) It fell 2.47% in early trading, while Germany Dax 30 (Dax) It fell 2.3%. The FTSE 100 (UKX) The pound fell 1.8%, while the pound fell to $1.22 after new data showed UK economy Contracting for the second month in a row in April.

In the US, Dow futures are down 1.9% at 5.20 AM ET. S&P 500 futures are down 2.3%, while Nasdaq futures are down 2.9%.

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“The hangover from Friday’s US CPI data was not helped by concern about China pulling back some of its economic reopening, or the more risky UK economic data,” Societe Generale strategist Kate Jukes said in a research note.

A number of neighborhoods in Shanghai faced another temporary lockdown at the weekend, as authorities launched mass testing just days after easing Covid restrictions on most of their 25 million residents.

Authorities in Beijing’s largest Chaoyang District announced on Thursday the closure of all entertainment venues, just days after they were allowed to reopen.

CNN’s Nicole Goodkind contributed to this report