Tariffs Stir Inflation Concerns Across Global Markets

European stocks were mixed after U.S. data suggested tariffs were causing inflation, affecting investor rate-cut expectations. Wall Street fell, and Treasury yields rose. U.S tariff threats are impacting markets, while inflation data and upcoming earnings reports maintain caution. Oil and gold prices increased amidst economic uncertainties.

European stocks experienced a mixed reaction on Wednesday following U.S. economic reports indicating tariffs were contributing to inflation, leading investors to reassess rate-cut predictions.

Concerns were heightened as U.S. consumer price data for June showed increased costs, while President Trump's tariff threats instilled caution among global markets.

The MSCI World Equity index dropped 0.1%, and the pan-European STOXX 600 fell by 0.2%. Meanwhile, the pound rose slightly against the dollar, despite Britain's inflation rate reaching a yearly high.

(With inputs from agencies.)