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| - Stock markets, oil prices and bitcoin sank Wednesday as a raft of issues ranging from rising inflation to China's cryptocurrency crackdown spooked investors. Wall Street opened lower after shares in Europe and Asia fell on fears that central banks will wind down easy money policies to tame inflation. US oil prices dropped by around five percent at one point to $62.31 per barrel after US data showed a jump in stockpiles and as virus-hit Asia experiences a weak pick-up in demand. Bitcoin, meanwhile, shed a whopping 30 percent after China signalled a new crackdown on the cryptocurrency and tycoon Elon Musk sent mixed signals about his car company's use of the unit. Bitcoin fell to almost $30,000 -- less than half the record level it reached last month -- before recovering a bit to around $37,500. China said digital currencies could not be used in markets as they were not real, adding that firms were not allowed to use the units to price their goods or services. "This is the latest chapter of China tightening the noose around crypto," said Antoni Trenchev, managing partner and co-founder of London-based crypto lender Nexo. Musk appeared to suggest Tesla was planning to sell its huge stock of bitcoin days after the electric car giant said it would stop using it in transactions because of environmental concerns. Musk later said Tesla had not sold any of its bitcoin. Mining cryptocurrency is a hugely energy-intensive process requiring large amounts of electricity in giant data centres. Meanwhile, London equities had shed 1.2 percent as trading ended, after official data showed a spike in UK inflation in April. Frankfurt dived by 1.7 percent and Paris lost 1.4 percent, while the Dow was off by 1.2 percent in midday trades. "European markets are trading sharply lower on Wednesday, after a late sell-off on Wall Street" Tuesday, noted OANDA analyst Sophie Griffiths. "Inflation fears continue to haunt the markets," she warned. Britain's official consumer prices index hit 1.5 percent in April, the highest since the start of the Covid-19 pandemic in March 2020. The data stoked jitters over a global surge in prices as economies reopen, and came one week after news that US inflation had shot up to 4.2 percent in April. Eurozone data meanwhile confirmed Wednesday that inflation in the bloc rose to 1.6 percent last month. Asian equities also fell as investors struggled to break out of a long-running cycle of volatility, with optimism over the economic recovery playing off against fears about rising prices. Focus is back on the impact that an expected burst of economic activity this year will have on inflation, which many warn could force central banks to hike interest rates. Iceland's central bank raised its key rate on Wednesday, citing inflation concerns. Traders will be closely reading through the minutes of the Federal Reserve's April meeting when they are released later Wednesday, hoping for an idea about the board's thoughts on its response to rising prices. EURO STOXX 50: DOWN 1.7 percent at 3,939.45 points New York - Dow: DOWN 1.2 percent at 33,638.10 London - FTSE 100: DOWN 1.2 percent at 6,950.20 (close) Frankfurt - DAX 30: DOWN 1.7 percent at 15,127.82 (close) Paris - CAC 40: DOWN 1.4 percent at 6,262.55 (close) Tokyo - Nikkei 225: DOWN 1.3 percent at 28,044.45 (close) Shanghai - Composite: DOWN 0.5 percent at 3,510.96 (close) Hong Kong - Hang Seng Index: Closed for a holiday Euro/dollar: DOWN at $1.2216 from $1.2222 at 2115 GMT on Tuesday Pound/dollar: DOWN at $1.4163 from $1.4189 Euro/pound: UP at 86.25 pence from 86.14 pence Dollar/yen: DOWN at 108.75 yen from 108.90 yen Brent North Sea crude: DOWN 3.5 percent at $66.34 per barrel West Texas Intermediate: DOWN 3.9 percent at $62.94 per barrel dan-rfj-wai/lc
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