World shares lower ahead of US 1Q economic growth report

The Conference Board reported Tuesday that its consumer confidence index fell in June to its lowest level in more than a year, results that were much weaker than economists expected.Investors face a pervasive list of concerns centering around rising inflation squeezing businesses and consumers.

Shares slipped Wednesday in Europe and Asia ahead of the latest update on US economic growth, while oil prices were lower. The Commerce Department was due to release a report on a first-quarter gross domestic product later in the day. Investors worried by uncertainty over inflation, rising interest rates, and the potential for a recession also were awaiting remarks by central bank leaders including Fed Chair Jerome Powell. Germany's DAX lost 1.2 percent to 13,071.73, while the CAC 40 in Paris was almost unchanged at 6,049.31. Britain's FTSE 100 shed 0.5 percent to 7,287.26. The futures for the Dow industrials and S&P 500 were up 0.1 percent.

On Tuesday, the S&P 500 fell 2 percent, the Dow Jones Industrial Average fell 1.6 percent, and the Nasdaq fell 3 percent after a survey showed weaker than expected consumer confidence in the US, mainly due to surging prices. A weaker-than-expected US consumer confidence reading highlighted worsening consumer expectations due to persistently high inflation. "All regions, countries, industries, and stocks are getting printed red with broad strokes. It is not looking pretty, and trading the bad news is good news theory could end in tears," Stephen Innes of SPI Asset Management said in a report. Tokyo's Nikkei 225 index lost 0.9 percent to 26,804.60 while the Kospi in Seoul fell 0.8 percent to 2,377.99. The Hang Seng in Hong Kong declined 1.9 percent to 21,996.89. The Shanghai Composite index sank 1.4 percent to 3,361.52.

Australia's S&P/ASX 200 gave up 0.9 percent to 6,700.20. Bangkok's SET lost 0.5 percent, while India's Sensex was nearly unchanged. The Conference Board reported Tuesday that its consumer confidence index fell in June to its lowest level in more than a year, results that were much weaker than economists expected.

Investors face a pervasive list of concerns centering around rising inflation squeezing businesses and consumers. Supply chain problems that have been at the root of rising inflation were made worse over the last several months by increased restrictions in China related to COVID-19.

Businesses have been raising prices on everything from food to clothing. Russia's invasion of Ukraine in February put even more pressure on consumers by rising energy prices and pumping gasoline prices to record highs. Consumers already were shifting spending from goods to services as the economy recovered from the pandemic's impact, but the intensified pressure from inflation has prompted a sharper shift away from discretionary items like electronics to necessities.

Central banks are raising rates to try and temper inflation after years of holding rates down to help economic growth but investors fear they could go too far and push economies into a recession.

Wall Street is bracing for the next round of corporate earnings in the next few weeks. They will help paint a clearer picture of how companies are dealing with the squeeze from rising costs and consumers curtailing some spending.

In another trading, Wednesday: The yield on the 10-year Treasury note, which helps set mortgage rates, slipped to 3.15 percent from 3.19 percent. US benchmark crude oil slipped 14 cents to USD 111.62 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude lost 21 cents to USD 113.59 per barrel. The dollar rose to 136.17 Japanese yen from 136.12 yen late Tuesday. The euro weakened to USD 1.0513 from USD 1.0522.