Following a hotter-than-expected US CPI consumer price index for October and the news that Evergrande has missed a 30-day grace period to pay its debts, US stocks have sunk on Wall Street. The S&P 500 Index is down 0.7% at time of writing.
First, the CPI has risen 0.9% in the month after rising 0.4% in September. This was the biggest gain in four months that drove the annual increase of the CPI index to 6.2%. It was also the highest year-on-year increase since November 1990 and after the 5.4% jump seen in September.
Therefore, markets are observing that inflation and persistent high inflation are much more than policy makers expected. This is hurting US stocks and sending the US dollar to strengthen on Wednesday.
To top, risk aversion is rising on the news that the cash-strapped China Evergrande Group has defaulted on coupon payments at the end of a 30-day grace period, pushing the Chinese real estate developer back to the brink of default.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
