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Investors dumped shares on Thursday after a bigger-than-expected rise in U.S. inflation spooked Wall Street and sent bond yields surging, with European stocks mirroring losses in Asia.
Inflation angst bruises world stocks
By Tom Wilson
Reuters
LONDON (Reuters) - Investors dumped shares on Thursday after a bigger-than-expected rise in U.S. inflation spooked Wall Street and sent bond yields surging, with European stocks mirroring losses in Asia.
The Euro STOXX 600 fell 1.5%, with indexes in Germany and Britain both slumping 1.9% as investors worried the U.S. Federal Reserve might move early on tightening its ultra-loose monetary policy.
Basic resources and oil and gas sectors, among the recent top gainers on the back of a surge in commodity prices, fell over 2%. Inflation pressures are going to be rising, and they re not going to be temporary, said Jeremy Gatto, investment manager at Unigestion. What does that mean? Effectively that rates will be rising.
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