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Global stocks fall as inflation remains in focus

Global stock markets tumbled on Monday as investors closed a month of trading on concerns about inflation and an international economic recovery.

Trading was thin over the holidays in the United States and Britain’s S&P 500 shares fell slightly on Monday.

In Europe, Germany’s DAX index fell 0.6%, followed by shares of Deutsche Bank, which fell 1.3%. The Wall Street Journal reported on Sunday that the Federal Reserve has told banks in recent weeks that it cannot correct its shortcomings. Persistence of money laundering controls according to people familiar with the matter.

index which opened lower It fell further after data showed domestic inflation rose to 2.4% in May. This is the highest level since November 201


Carsten Brzeski, ING Groep, said: “With headline inflation rising, ECB’s attempts to avoid a downturn in dialogue will become more complicated.of

ING -0.21%

Head of Global Macro Research

In Spain, where inflation rose to 2.4 percent in May, the IBEX index was down 0.8 percent. Utilities fell on the heels of a government bill to lower domestic electricity prices. Endesa closed down nearly 6 percent.

Italy’s largest insurance company Assicurazioni Generali SpA has launched a $1.44 billion acquisition offer for the smaller Società Cattolica di Assicurazione SpA. In which stocks were up 15%, the Italian index maintained its trend and closed higher.

The Pan-Continental Europe Stoxx 600 Index closed down 0.5%.

In Asia, Japan’s Nikkei 225 was down 1%, Hong Kong’s local Hang Seng Index closed up 0.1%. In mainland China, the CSI 300 Index also closed up 0.2%. The official purchasing managers’ index for manufacturing was 51.0. In May, it was slightly lower than the previous month’s reading of 51.1. but still above the 50 level, which separates expansion from contraction.

Among individual shares, Meituan shares jumped more than 10% in Hong Kong on Friday. The Chinese food delivery giant reported better-than-expected revenue of 37 billion yuan, equivalent to $5.8 billion. During the three months ending March Financial stocks fell. AIA Group fell nearly 4 percent and Hong Kong shares of HSBC Holdings fell 3 percent.

Marie Nicola, fund manager at PineBridge Investments, said the market remains unstable as investors try to gauge U.S. growth prospects. and price increases from data points such as salary figures due on Friday. “Everyone pays attention to inflation,” she said.

Ms Nicola said the key question for investors is how this will affect Federal Reserve policy. This includes the time frame for which central banks may begin to dwindle or curtail asset purchases. She added that her company was overweight in European and Japanese stocks. which holds these shares more than the benchmark it tracks. Both markets are believed to have attractive value and benefit from the global economic recovery.

US markets were closed Monday for Memorial Day. Throughout May, the S&P 500 recovered from volatility from inflation earlier this month to record a fourth straight month increase.

in the currency market The dollar was lower, with the WSJ Dollar Index down 0.2% to 85.07.

Bitcoin is up nearly 5% from late Friday levels to $36,877.

write to Patricia Kowsmann at patricia.kowsmann@wsj.com and Xie Yu at Yu.Xie@wsj.com.

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