AFP, New York :
Global stocks retreated Tuesday as British inflation data stoked worries about Brexit fallout and a senior US central banker said an interest rate hike could come as early as September.
Equity markets were broadly lower, with bourses in Tokyo, Paris, London and
Frankfurt all falling and US markets pulling back from record highs.
Britain’s 12-month Consumer Price Index rose by 0.6 percent in July as a pound weakened by the British vote to exit the European Union increased import prices. Analysts expect British inflation to rise further in the coming months as the pound holds at multi-year lows against the dollar and euro.
On the positive side, investor confidence in Germany rebounded slightly this month, as the shock over the June Brexit vote begins to wear off, a leading survey showed.
The ZEW investor confidence index gained 7.3 points to stand in positive territory at 0.5 points in August, recovering partially from a massive 26-point slump in July.
London’s benchmark FTSE closed 0.7 percent lower, while Frankfurt’s DAX 30 shed 0.6 percent and the Paris CAC 40 lost 0.8 percent. In the US, the S&P 500 lost 0.6 percent after William Dudley, head of the Federal Reserve’s New York branch, told Fox Business that a rate hike was possible next month.
Global stocks retreated Tuesday as British inflation data stoked worries about Brexit fallout and a senior US central banker said an interest rate hike could come as early as September.
Equity markets were broadly lower, with bourses in Tokyo, Paris, London and
Frankfurt all falling and US markets pulling back from record highs.
Britain’s 12-month Consumer Price Index rose by 0.6 percent in July as a pound weakened by the British vote to exit the European Union increased import prices. Analysts expect British inflation to rise further in the coming months as the pound holds at multi-year lows against the dollar and euro.
On the positive side, investor confidence in Germany rebounded slightly this month, as the shock over the June Brexit vote begins to wear off, a leading survey showed.
The ZEW investor confidence index gained 7.3 points to stand in positive territory at 0.5 points in August, recovering partially from a massive 26-point slump in July.
London’s benchmark FTSE closed 0.7 percent lower, while Frankfurt’s DAX 30 shed 0.6 percent and the Paris CAC 40 lost 0.8 percent. In the US, the S&P 500 lost 0.6 percent after William Dudley, head of the Federal Reserve’s New York branch, told Fox Business that a rate hike was possible next month.
