- Global shares fell, as investors grew increasingly concerned that a strong read of US
inflation will trigger even faster rate hikes. - US consumer inflation is already running at its hottest in over 40 years, which is rattling stock
markets .
Global stocks fell on Tuesday as investors grew increasingly concerned that stubbornly high inflation will push central banks into much more aggressive action than expected.
US consumer inflation is expected to have risen further in March, which could push the
$4 and $4 futures were both down around 0.1%, while $4 futures reversed earlier losses and rose 0.1%.
The
"The main focus today will be today's US CPI number for March, which look set to push well above 8% later today," $4Michael Hewson, chief market analyst at CMC Markets. "Having seen the Federal Reserve pull the trigger on its first interest rate rise since 2018 last month, much has been made of the timeline of how big the next few rate increases are likely to be with the odds increasing of more than one 50bps rate rise occurring in the coming months."
The Fed raised rates by 25 basis points in March, but it hasn't raise rates by more than that at a single meeting $4
Meanwhile in Europe, shares were under pressure after another surge in German inflation and as Russia's war on Ukraine escalated. The Pentagon $4 on Tuesday it was monitoring several Ukranian reports that Russian forces had used chemical weapons in the besieged port city of Mariupol.
The $4 fell 0.5%, the German $4 dropped 1.0%, and the French $4 slid 0.8%.
The
"The risk is that the
War in Ukraine has sent global commodity prices skyrocketing and exacerbated inflation. Because of its reliance on Russia for energy in particular, Europe risks being harder hit than other regions. $4 were last up 3% on the day at $101.45 a barrel, skimming one-month lows, but still showing a gain of 30% for the year to date.
Asian stocks were a mixed bag due to inflation concerns and surging COVID cases in China, which has implemented strict lockdowns, but started easing restrictions in financial hub Shanghai.
Japan's $4 dropped 1.85%, while China's $4 rose 1.46% and Hong Kong's $4 gained 0.52%.