Global markets fall after a difficult week on Wall Street; yen hits two-decade low

the dow (INDU) it fell 880 points, or 2.5%, on Friday. the S&P 500 (SPX) yielded 2.7% and the nasdaq (NDX) fell about 3%. The US consumer price index rose 8.6% in May, raising fears that the Federal Reserve may have to act even more aggressively to try to rein in price rises.
The shock waves were felt most acutely in Asia on Monday. from Japan Nikkei (N225) closed down 3% and the yen weakened to the lowest level in more than 20 years. The Japanese currency has been declining rapidly in recent months due to a strong dollar and ultra-loose Japanese monetary policy.

Japan’s central bank and government warned in a rare joint statement on Friday that they are concerned about sharp declines, suggesting possible intervention by Tokyo to stem the decline.

the yen it was not the only Asian currency to experience a sharp drop. The Indian rupee fell to a record low of 78.2 against the US dollar in early trading.

Elsewhere in Asia, Hong Kong hang up seng (HSI) fell 3.4% on Monday. Korea’s Kospi fell 3.5%. from China Shanghai Composite (SHCOMP) down 0.9%.
In Europe, France ACC 40 (CAC40) fell 2.47% in early trading, while Germany’s DAX 30 (DAX) down 2.3%. the FTSE100 (United KingdomX) fell 1.8%, while the pound fell to $1.22 after new data showed the UK economy contracted for the second month in a row in April.

In the US, Dow futures were down 1.9% by 5:20 a.m. ET. S&P 500 futures were down about 2.3%, while Nasdaq futures were down about 2.9%.

“The hangover from Friday’s US CPI data is not helped by concerns that China will pull back on some of its economic reopening or more dire economic data out of the UK,” said Societe Generale strategist, Kit Juckes, in a research note.

Several neighborhoods in Shanghai faced another temporary lockdown over the weekend as authorities launched mass testing just days after Covid restrictions were eased for most of its 25 million residents.

Authorities in Beijing’s largest Chaoyang district on Thursday announced the closure of all entertainment venues, just days after allowing them to reopen.

— CNN’s Nicole Goodkind contributed to this report

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