Global Markets Retreat Amid Inflation Uncertainty

Global stock markets experienced a downturn as investors prepared for potential U.S. interest rate cuts driven by upcoming inflation data. The European shares fell due to disappointing corporate results, while the U.S. dollar strengthened. Economists forecast steady inflation rates, keeping investors on edge about potential surprises.

European shares slipped on Wednesday, reflecting declines in Asian stocks as investors awaited U.S. inflation data that could influence the Federal Reserve to further cut rates. This cautious atmosphere prevailed despite the dollar maintaining near a recent two-week high.

Expectations for a U.S. rate cut next week topped 85%, but analysts worry about the potential for disappointment. November's consumer price index is predicted to rise by 0.3%, which, if exceeded, could surprise the markets.

In currency markets, the dollar index marginally increased. The Canadian dollar neared a historic low amid speculation of a major Bank of Canada rate cut, while Australian central bank decisions impacted the Aussie dollar. Global oil and coffee prices saw notable shifts due to policy changes and environmental concerns.

(With inputs from agencies.)