U.S. and European stocks slid on Wednesday as the outlook for rate hikes sullied sentiment, while bond yields rose after euro-zone gross domestic product beat expectations, adding to bets of a more hawkish European Central Bank.
The S&P 500 and the Dow Jones both closed lower on Wednesday as investors worried about the outlook for the economy.
Crude oil surged to a 13-week high, while Exxon Mobil shares hit a new record. Analysts warned that Intel could pre-announce weaker-than-expected earnings for the second quarter.
The pan-European STOXX index fell 0.57% as concerns about growth weighed on banking shares.
MSCI’s gauge of stocks across the globe dropped 0.56%.
The euro hit a seven-year peak against the yen and the dollar hit a fresh 20-year high against the Japanese yen.
The Organization for Economic Cooperation and Development slashed its growth outlook to 3% this year from 4.5%.
Oil prices rose as U.S. crude hit a 13-week high despite a rise in domestic crude inventories, as supplies looked likely to tighten.