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World Shares Skid on Tuesday           05/11 05:28

   Shares dropped Tuesday in Asia after selling of several Big Tech companies 
pulled U.S. benchmarks lower.

   BANGKOK (AP) -- Shares dropped Tuesday in Asia after selling of several Big 
Tech companies pulled U.S. benchmarks lower.

   Paris, Frankfurt, Tokyo and Hong Kong declined while Shanghai advanced.

   Despite reassurances from the Federal Reserve and a much weaker than 
expected U.S. jobs reading last week, investors have refocused on the potential 
for surging prices to pressure central banks into tapering off on their massive 
stimulus and ultra-low interest rates, analysts said.

   "Investors seem to look past the jobs report and continue to place their 
focus on the inflation narrative with rising commodities prices and chip 
shortages in play," Jun Rong Yeap of IG said in a commentary.

   Germany's DAX sank 2% to 15,101.18 while the CAC 40 in Paris gave up 1.8% to 
6,272.36. Britain's FTSE 100 lost 2% to 6,980.62. U.S. futures also augured 
losses, with the contract for the S&P 500 down 0.6% and that for the Dow 
industrials 0.4% lower.

   China reported its strongest increase in producer prices since October 2017 
last month, as supply constraints cascaded into manufacturing.

   China's economy was the first to recover from the pandemic and the central 
bank, or People's Bank of China, has been adjusting policies to keep inflation 
in check.

   The producer price index jumped 6.8% in April from a year earlier, up from a 
4.4% increase in March. So far, though, the feed-through to consumer prices is 
relatively subdued, Julian Evans-Pritchard of Capital Economics said in a 
commentary, adding that "we still doubt that inflation is about to become a key 
driver of PBOC policy."

   The Shanghai Composite index erased early losses Tuesday to gain 0.4% to 
3,441.85.

   While China's COVID situation has stabilized, a number of Asian countries 
are seeing rising coronavirus infections and deaths that are straining health 
systems and setting back progress toward vanquishing the pandemic.

   Malaysia's government on Monday ordered a near lockdown for about a month to 
fight the coronavirus, while allowing businesses to operate at reduced capacity,

   Tokyo's Nikkei 225 gave up 3,1% to 28,608.59 while the Hang Seng in Hong 
Kong fell 2% to 28,013.81. In Seoul, the Kospi dropped 1.2% to 3,209.43. 
India's Sensex slipped 0.7%.

   Australia's S&P/ASX 200 lost 1.1% to 7,097.00. The government was due 
Tuesday to release a big-spending economic plan for the next fiscal year 
designed to create jobs and repair pandemic damage and with an eye toward 
winning votes at looming general elections.

   On Monday, the S&P 500 fell 1% to 4,188.43. The Dow Jones Industrial Average 
dropped 0.1% to 34,742.82. The blue chip index, which hit an all-time high on 
Friday for the third straight day, traded higher for much of Monday, but dipped 
into the red in the last half-hour of trading.

   Small company and technology stocks had a rough day. The Nasdaq lost 2.5% to 
13,401.86, while the Russell 2000 index fell 2.6% to 2,212.70.

   Big Tech companies, including Apple, Facebook, Amazon and Google's parent 
company, accounted for most of the S&P 500's decline.

   Inflation has been a concern for investors since bond yields spiked earlier 
this year, but yields have mostly stabilized since then. The yield on the 
10-year Treasury was steady at 1.61%.

   Rising commodity prices have begun to push prices of some consumer products 
higher but analysts expect increases to be mild and tied to the growing 
economy, even as the jobs market lags behind. Consumer confidence and retail 
sales are regaining ground as people get vaccinated and businesses reopen. 
Americans set a record for pandemic-era air travel on Sunday, according to The 
Transportation Security Administration.

   Meanwhile, the most recent round of corporate earnings reports showed a 
broad recovery touching many different sectors and industries during the the 
first three months of the year. Much of that was anticipated ahead of the 
reports and investors are now far off from the next big round of results.

   In other trading, U.S. benchmark crude oil lost 43 cents to $64.49 per 
barrel in electronic trading on the New York Mercantile Exchange. It gained 2 
cents to $64.92 per barrel on Monday. Brent crude, the international standard 
for pricing, gave up 44 cents to $67.88 per barrel.

   The U.S. dollar rose to 108.87 Japanese yen from 108.83 yen late Monday. The 
euro strengthened to $1.2167 from $1.2134.

 
 
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