Global stock markets nosedive on fears over spiking inflation

Global stock markets nosedive on fears over spiking inflation

Equity markets across the world tumbled on Tuesday as a fierce global selloff erupted on fears over spiking inflation, dealers said. London stocks dived 3.0 per cent, Frankfurt slumped 2.5 per cent and Paris shed 2.3 per cent in afternoon deals. “European stocks are tanking lower after a weak handover from Wall Street” on Monday, said OANDA analyst Sophie Griffiths. “Inflation concerns sent tech stocks tumbling overnight, and the sector has come under pressure in Europe today.” Traders are fearful that surging inflation could force the world’s central banks to wind back ultra-loose monetary policies earlier than forecast and damage post-Covid recovery. Asia took a battering after New York was gripped Monday by a wave of selling, particularly in the tech sector which is vulnerable to higher borrowing costs due to the potential effect on future earnings and cash flow. The Dow snapped a three-day streak of records and the S&P 500 lost more than one percent, while the Nasdaq shed 2.6 percent. Asia followed the lead, with tech firms at the forefront of the selling. Tokyo and Taipei each dropped more than 3.0 percent, while Hong Kong was off 2.0 percent. Wall Street continued to fall at the opening