Stocks falter as economic worries nag, big rate hike lifts kiwi dollar

World stock markets stumbled on Wednesday as signs that the economic outlook is weakening spurred caution, while a bigger-than-expected interest-rate hike from New Zealand lifted the kiwi dollar.

European stocks fell with the broad STOXX 600 index pulling away from Tuesday’s one-month highs (.STOXX). U.S. equity futures dipped , and Japan’s Nikkei (.N225) fell 1.6% in its biggest one-day percentage fall since mid-March.

MSCI’s world equity index (.MIWD00000PUS) pulled further away from Tuesday’s almost seven-week highs, while Asia trade was thinned by holidays in Hong Kong and China.

Weak U.S. economic data this week has exacerbated recession worries, taking the edge off recent stock market gains.

Data on Tuesday showed U.S. job openings fell in February to the lowest level in almost two years and data on Monday pointed to weakening U.S. manufacturing activity. U.S. March service sector activity data is due out later.

This report’s information was first seen on REUTERS; to read more, click this link.