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| - Stock markets tumbled Wednesday on soaring inflation numbers, while bitcoin plunged after China's central bank said cryptocurrencies could not be used for payments. Oil prices slid on reports of a possible breakthrough in nuclear talks with key crude producer Iran -- and a rise in value by the dollar against other major currencies. Bitcoin 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. 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 shed 1.4 percent in afternoon trading after official data showed a spike in UK inflation in April. Frankfurt dived by 2.0 percent and Paris lost 1.9 percent, while the Dow was off by 1.1 percent as trading got underway on Wall Street. "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 -- particularly the Federal Reserve -- to wind back ultra-easy monetary policies, including possibly hiking 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 Fed's April meeting when they are released later Wednesday, hoping for an idea about the board's thoughts on its response to rising prices. Energy firms were among those leading the losses as oil prices fell from recent peaks following reports that there had been progress on talks to bring the United States and Iran back into the 2015 nuclear deal. "A positive outcome here would pave the way for increased oil supply from Iran," explained National Australia Bank analyst David de Garis. London - FTSE 100: DOWN 1.4 percent at 6,935.19 points Frankfurt - DAX 30: DOWN 2.0 percent at 15,076.09 Paris - CAC 40: DOWN 1.9 percent at 6,230.42 EURO STOXX 50: DOWN 2.1 percent at 3,919.87 New York - Dow: DOWN 1.1 percent at 33,694.14 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: UP at $1.2236 from $1.2222 at 2115 GMT on Tuesday Pound/dollar: DOWN at $1.4176 from $1.4189 Euro/pound: UP at 86.31 pence from 86.14 pence Dollar/yen: DOWN at 108.83 yen from 108.90 yen Brent North Sea crude: DOWN 2.9 percent at $66.72 per barrel West Texas Intermediate: DOWN 3.1 percent at $63.46 per barrel dan-rfj/wai/lth
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