Wall Street closes with losses in a tense week marked by inflation

New York, May 14 (EFE) .- Wall Street closed the week with moderate losses after the falls caused by the annual inflation data for April, which stood at 4.2%, the highest registered since 2008, and that the parquet could not compensate despite the regrowth registered in the last two days.

The Dow Jones Industrials suffered its worst day since January on Wednesday, with a 1.99% cut and throughout the week it accumulated a 0.88% drop. The S&P 500 fell 0.72% and the Nasdaq index 0.42%,

The main European markets also registered a rebound in the final stretch and even managed to save the week with rises or slight losses, except the London Stock Exchange.

Madrid gained 0.95%, Milan 0.63% and Frankfurt 0.11%. However, Paris lost a slight 0.01% and London 1.21%.

The consumer price index (CPI) in the United States rose 0.8% in April and has placed year-on-year inflation at 4.2%, the highest recorded since 2008, raising concerns about the take-off of inflation in the first world economy.

The figures, higher than economists’ forecasts of 3.6%, generated strong movements in the debt market, raising the yield of the US 10-year Treasury bond to 1,695% after several weeks of stabilization.

This faster and stronger-than-expected rise in inflation in the United States spooked Wall Street on Wednesday, which stepped up sales of stocks amid fears that the Federal Reserve (Fed) could prematurely initiate the withdrawal of stimulus monetary.

Experts have considered that the increase of eight tenths in consumer prices in April is one more sign that the economic reopening in the US is generating strong demand that supply is not able to absorb, especially for goods and services. , and now they look at the central bank.

Investors are also concerned that a rise in commodity prices could affect profit margins, and they withdrew their capital, especially from companies that grew the fastest in the past year.

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However, fears seemed to fade on Thursday and Friday, after several Fed officials assured that the central bank has no plans to end the incentives.

For the head of market strategy at Canaccord Genuity, Tony Dwyer, the fall registered this week is a good sign.

“There needs to be a correction in the summer that is significant enough to eliminate the condition of extreme overstocking in the medium term and excess optimism,” he was quoted as saying by CNBC.

In the oil market, the week has been conditioned by the expansion of the pandemic in India, one of the major oil consumers, and by the cyberattack on the main US pipeline network, which caused prices to fall. Brent and Texas fell sharply on Thursday, although they recovered throughout Friday.

The Texas intermediate oil price (WTI) closed this Friday with a rise of 2.43%, to 65.37 dollars, which helped it to recover lost ground and even to accumulate weekly gains of 47 cents.

(c) EFE Agency

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