US jobless claims fall to pandemic low; inflation worries weigh on markets – enterprise dwell | Enterprise

Good morning and welcome to our ongoing coverage of the global economy, financial markets, euro zone and business.

Inflation worries continue to hold markets today after US consumer prices rose much faster than expected in April due to supply shortages and rising demand from the easing of lockdowns.

News that the consumer price index was up 4.2% m / m – the fastest since 2008 – fueled fears that the US economy could get too hot.

It sparked losses on Wall Street and Asia Pacific stock exchanges last night, where stocks fell for the third straight year.

With government aid packages boosting consumer spending and extensive supply chains creating a mess in commodities, investors are concerned that the Federal Reserve believes the surge in inflation may not be temporary.

The Dow fell 681 points, or 1.99%, its worst session since January – a day after its biggest drop since February.

The sell-off has again spread around the globe and sent Japan Nikkei moving 2.5% and Australia S & P / ASX 200 Nearly 1% down, which added to the losses earlier this week.

London is also aiming for a lower start. The FTSE 100 fell nearly 1%, erasing yesterday’s mild rebound after Tuesday’s slump.

IGSquawk
(@IGSquawk)

European opening talks: #FTSE 6949 -0.80% # DAX 15047 -0.68% # CAC 6234 -0.73% # AEX 687 -1.10% # MIB 24271 -0.74% # IBEX 8953 -0.61 % # OMX 2182 -0.53% # STOXX 3912 – 0.89% # IGOpeningCall

May 13, 2021

However, some economists point out that US inflation was driven by one-time factors when the economy emerged from pandemic restrictions, so it could be a temporary increase.

The prices of used cars and trucks, lodging and lodging, airline tickets, recreational activities, auto insurance and furniture have all increased CPI as business reopenings caused temporary quirks in data.

Matthew C. Klein
(@M_C_Klein)

Don’t let April’s surge in inflation fool you. It is powered by the reopening of Quirks. Https://t.co/3dVrRdZ38q

<- It is always worth looking into the data on levels and the attribution tables. pic.twitter.com/6pzsVCVl7H

May 12, 2021

Today new US producer price data and weekly jobless claims are due, which will provide new insights into the development of the world’s largest economy.

It will take some time to determine if inflation is temporary or permanent, so this problem will keep popping up for months.

Jim Reid of Deutsche Bank forecasts regular pockets of volatility while the two sides take care of it:

It is dangerous to read too much into a number, but its great strength gives us confidence that it is not just a passing story. Another buzzword for us was how complicated this year is going to be for the markets, especially when the reopening takes place. This version embodies that thought process.

It may get boring, but this year will be a major battle between the upward trend in mass opening / stimulus on the one hand and the inflationary consequences on the other. Expect regular bags of vol. I still rely heavily on the inflation camp, but the reality is that the struggle is still in its infancy and non-inflationists can still use the passing argument for a few more months.

Heather Long
(@byHeatherLong)

This is the best chart I’ve seen that clearly explains what’s going on with inflation.

Yes, April inflation was the fastest since September 2008
But these are the B / C prices compared to last April.

Chart via @andrewvandam pic.twitter.com/cuLI23N7aU

May 12, 2021

Bitcoin After Elon Musk announced in a tweet that Tesla would stop buying vehicles with Bitcoin, he crashed overnight, citing the environmental impact of mining the cryptocurrency.

Elon Musk
(@elonmusk)

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

May 12, 2021

Musk added that Tesla would not sell bitcoin it bought earlier this year and intends to use bitcoin for transactions once the mining industry consumes more sustainable energy.

This dropped Bitcoin – from over $ 54,000 just before Musk’s tweet to under $ 46,000. It has bounced back a bit since then and is around $ 51,000 – but it’s still down over 10% in the past 24 hours.

Other cryptos, including ether and Dogecoin, also slipped:

Investing.com
(@Investingcom)

pic.twitter.com/vG01cHRg7W

May 13, 2021

The agenda

  • 1:30 p.m. CET: US weekly unemployment claims information
  • 1.30 p.m. CET: US producer price inflation report for April

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