Markets fret over US debt ceiling and recession

SINGAPORE - Despite the latest inflation data

confirming that prices are on a downward trend,

markets continued to fret over a potential breach of the US debt ceiling and an impending recession, and its impact on corporate earnings.

Sentiment remained downbeat throughout last week despite the latest US Labour Department’s consumer price index (CPI) rising 4.9 per cent in April from a year ago, below the expected 5 per cent increase. Month-over-month CPI in April rose 0.4 per cent after gaining 0.1 per cent in March.