On Wednesday, global shares sank and the dollar rose as better-than-expected economic data failed to allay market fears of high inflation and an oncoming recession, fueled in part by rising oil costs.
The Institute for Supply Management (ISM) reported that industrial activity in the United States increased in May, despite rising costs, as demand for goods remained robust.
All three main indexes on Wall Street ended lower, driven by stocks in the financials, healthcare, technology and consumer discretionary sectors.
The MSCI world equity index, which tracks shares in 50 countries, was down 0.81%. The pan-European STOXX 600 index fell 1.04%.
U.S. Treasury yields hit a two-week high of 2.9149%, while two-year yields climbed to 2.6517%.
The dollar rose against the euro as the common currency remained under pressure following the hottest eurozone inflation on record that raised worries about the region’s growth outlook.
Gold prices inched up from a two-week low, supported by worries over rising inflation, although a stronger dollar and rising U.S. yields kept gains in check.
Brent crude was up 0.18% at $115.81 a barrel after European Union leaders voted to phase out Russian oil even as China ended its COVID-19 lockdown.
This report’s information was first seen on Reuters; to read more, click this link.
