Wall Street plummets as inflationary shock rattles global markets

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We are starting the week with more dire economic data as the UK economy recorded a bigger than expected decline in April.

GDP fell by 0.3 pc over the month. That beat economists’ forecasts and followed a 0.1pc decline in March.

The figures reflect the impact of the 54% rise in energy prices in April, which exacerbated the cost of living crisis for British households as inflation soars.

All eyes will be on the Bank of England, which will announce its interest rate decision this week as it grapples with soaring prices and a slowing economy.

5 things to start your day

1) Ad boycott undermines GB News and free speech, says boss – Angelos Frangopoulos says advertising snub is ‘dangerous for public debate’

2) British staff try to boost productivity – working a four-day week Allegations of elitism and logistical problems hang over companies testing fewer hours

3) Work-from-home revolution leaves shopping streets ‘permanently scarred’ – Attendance is expected to remain 10% lower than it was before the pandemic

4) The serial entrepreneur who took a wrong turn in the used car boom – Alex Chesterman, founder of Zoopla and LoveFilm, fights to stop Cazoo’s slide

5) Wall Street giants resist EU bid to siphon off city jobs – US finance chiefs to voice concern over Brussels’ push to move bankers out of London

What happened overnight

Markets fell in Asia on Monday and the dollar rallied amid a global rout fueled by a print of better-than-expected US inflation that intensified bets on a more aggressive campaign of interest rate hikes of the Federal Reserve.

Asia followed suit, with Hong Kong, Tokyo, Seoul, Taipei and Wellington down more than 2%, while Shanghai, Singapore, Manila and Jakarta fared almost as badly.

coming today

  • Company : Molten Ventures, Sirius Real Estate (annual results)
  • Economy: GDP, industrial production, manufacturing production, trade balance (UK)

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