Global stock markets fall on eve of US inflation data

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Stock markets were mostly down and the dollar fell on Tuesday as investors nervously await the release of key US inflation data later this week.

If official consumer price data on Wednesday beats analysts’ forecasts, markets could see a strong sell-off, analysts warned.

With inflation already at its highest level in 40 years, there are growing fears that further interest rate hikes by the world’s major central banks could go too far and tip the global economy into a tailspin. recession.

Federal Reserve officials have stressed in recent days that further hikes will come to bring soaring inflation under control, with a third consecutive three-quarter-point hike on the table next month.

Inflation data “could actually set the tone for the rest of the summer,” said OANDA analyst Craig Erlam.

“It looks pretty dramatic, but if we don’t see a drop in the headline rate…it could really take the breath out of equity markets because it would be very difficult for the (Fed) to raise anything after that. Under 75 basis points in September,” the expert said.

While U.S. gasoline prices have fallen, easing some of the pressure on American families, the overall rate remains high.

Swissquote Bank analyst Ipek Ozkardeskaya said the recent drop in energy and commodity prices “should have a cooling effect…but higher labor costs could keep the economy going.” ‘inflation at undesirably high levels’.

Oil prices have reversed some of the previous day’s gains and remain around six-month lows as recession fears grow and investors worry about the impact on demand.

Markets are also keeping tabs on Iran nuclear talks after the European Union submitted a “final text” in talks to salvage a 2015 deal.

A deal could pave the way for Tehran to resume crude sales in international markets, partly filling the void left by the ban on Russian exports following the invasion of Ukraine.

U.S. tech stocks fell after a second major chipmaker issued a profit warning.

“It looks like the tech sector as well as the rest of the economy is slowing down,” said Tom Cahill of Ventura Wealth Management.

– Key figures around 8:45 p.m. GMT –

New York – Dow: DOWN 0.2% to 32,774.41 (closing)

New York – S&P 500: 0.4% down to 4,122.47 (close)

New York – Nasdaq: 1.2% drop to 12,493.93 (closing)

London – FTSE 100: UP 0.1% to 7,488.15 (closing)

Frankfurt – DAX: DOWN 1.1% to 13,534.97 (closing)

Paris – CAC 40: DOWN 0.5% to 6,490.00 (closing)

EURO STOXX 50: DOWN 1.1% to 3,715.37

Tokyo – Nikkei 225: 0.9% decline to 27,999.96 (close)

Hong Kong – Hang Seng Index: DOWN 0.2% to 20,003.44 (close)

Shanghai – Composite: UP 0.3% to 3,247.43 (close)

Euro/dollar: UP at $1.0213 vs. $1.0194 on Monday

Pound/dollar: UP to $1.2071 from $1.2079

Euro/pound: UP at 84.57 pence against 84.35 pence

Dollar/yen: UP to 135.12 yen against 134.98 yen

North Sea Brent: 0.1% decline to $96.57 a barrel

West Texas Intermediate: DOWN 0.1% to $90.70 a barrel

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