- Mourners pay tribute to latest victims of deadly Channel crossing
- Phillies win thriller to level Mets series
- Yu bags first PGA Tour win with playoff win
- PSG held by Nice to leave Monaco clear at top of Ligue 1
- Lewandowski treble for leaders Barca as Atletico held
- Fresh Israeli strikes hit south Beirut
- Sucic stunner earns Real Sociedad draw against Atletico
- PSG draw with Nice, fail to reclaim top spot in Ligue 1
- Gudmundsson downs AC Milan after De Gea's penalty heroics for Fiorentina
- 'Yes' vote prevails in Kazakhstan nuclear plant vote: TV
- 'Difficult day': Oct 7 commemorations begin with festival memorial
- Commemorations begin for anniversary of attack on Israel
- 'Nothing gets in way of team,' says Celtics' MVP hopeful Tatum
- 'We will win!': Mozambique's ruling party confident at final vote rally
- Tunisia voting ends as Saied eyes re-election with critics behind bars
- Florida braces for Milton, FEMA head slams 'dangerous' Helene misinformation
- Postecoglou slams 'unacceptable' Spurs after 'terrible' loss at Brighton
- Marmoush double denies Bayern outright Bundesliga top spot
- Rallies worldwide call for Gaza, Lebanon ceasefire
- New 'Joker' film, a dark musical, tops N.America box office
- Man Utd stalemate keeps Ten Hag in danger, Spurs rocked by Brighton
- Drowned by hurricane, remote N.Carolina towns now struggle for water
- Vikings hold off Jets in London to stay unbeaten
- Ahead of attack anniversary, Netanyahu says: 'We will win'
- West Indies cruise to T20 World Cup win over Scotland
- Man Utd fire another blank in Aston Villa stalemate
- Lewandowski treble powers Liga leaders Barca to Alaves victory
- Russian activist killed on front line in Ukraine
- Openda strike briefly sends Leipzig top of Bundesliga
- Goal-shy Man Utd have to 'step up', says Ten Hag
- India bowl out Bangladesh for 127 in T20 opener
- Madueke rescues Chelsea in draw with 10-man Forest
- Beckett's belief rewarded as Bluestocking storms to Arc glory
- Trump on the stump, Harris hits airwaves in razor-edge US election
- Flash flooding kills three in northern Thailand
- Kaur leads India to victory over Pakistan in Women's T20 World Cup
- Juventus held by Cagliari after late penalty drama
- In France's Marseille, teen 'stabbed 50 times' then burned alive
- Ruthless Gauff beats Muchova in straight sets to win China Open
- India restrict Pakistan to 105-8 in Women's T20 World Cup
- England target repeat of Pakistan Test whitewash
- Penrith Panthers win fourth straight NRL title after downing Storm
- Weary Sinner happy for day off after battling into Shanghai last 16
- Pakistan's Masood warns England still a force without Stokes
- Madrid's Carvajal to miss several months after serious knee injury
- Two elephants die in flash flooding in northern Thailand
- Sabalenka targets world number one and Wuhan hat-trick
- Tunisia votes with Saied set for re-election
- Bagnaia sets 'example' with Japan MotoGP win to cut gap on Martin
- Intense Israeli bombing rocks Beirut ahead of war anniversary
Stocks slide as US inflation soars
Stock markets plunged deeper into the red on Friday after data showed that US inflation soared to highest level in 40 years in May, much higher than analysts had expected.
In Europe, all of the major stock indices were down by more than two percent by mid-afternoon.
Paris's blue-chip CAC 40 was showing a loss of 2.3 percent, Frankfurt's DAX index was down 2.3 percent, Milan's FTSE MIB shed 4.6 percent, Madrid's IBEX tumbled 3.5 percent and London's FTSE dropped by 2.0 percent.
On Wall Street, stocks also dropped sharply at the open.
According to US government data, the consumer price index jumped by 8.6 percent on a 12-month basis in May, the steepest increase since December 1981, driven by surging energy and food prices.
"US CPI for May has come in stronger than expected," said Stephen Innes of SPI Asset Management. "Inflation is back on the highs; critically, it's across the board."
The numbers had been eagerly anticipated as investors hungrily look for clues as to the direction of US interest rates at next week's meeting of the Federal Reserve.
A half-point increase in US borrowing costs "was a done deal in any case, so these data aren't an immediate policy influence," said Innes.
But it also cemented expectations for another half-point increase in September, the expert said.
The dollar surged against the pound and other leading currencies as investors bet on an increase in US interest rates next week.
Inflation is soaring across the world, prompting the European Central Bank to finally join the Fed in tightening its monetary policy as it announced on Thursday that it would raise rates next month.
Economists warn that surging inflation, driven by rocketing energy prices, could push top economies into recession.
Adding to the unease was news that officials in China had once again locked down millions of people for Covid testing owing to another flare-up in cases, dealing a blow to hopes for an economic reopening.
"Warning signs about the economy are emerging as weekly (US) jobless claims are starting to rise, China's Covid situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing," said Edward Moya, analyst at OANDA trading group.
"It seems reductions in global growth forecasts will become a steady theme over the next few months and that should complicate how much more tightening we see from central banks," he said.
The World Bank and OECD both lowered the global economic growth forecasts for this year earlier this week.
One bright note Friday was data showing that China's producer price inflation eased last month to its lowest level in more than a year.
- Key figures at around 1345 GMT -
New York - Dow: DOWN 1.7 percent at 31,738.00 points
London - FTSE 100: DOWN 2.0 percent at 7,325.37
Frankfurt - DAX: DOWN 2.3 percent at 13,867.36
Paris - CAC 40: DOWN 2.3 percent at 6,210.04
EURO STOXX 50: DOWN 2.6 percent at 3,626.93
Tokyo - Nikkei 225: DOWN 1.5 percent at 27,824.29 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 21,806.18 (close)
Shanghai - Composite: UP 1.4 percent at 3,284.83 (close)
Euro/dollar: DOWN at $1.0532 from $1.0620 late Thursday
Euro/pound: UP at 85.11 pence from 84.98 pence
Dollar/yen: DOWN at 134.18 yen from 134.40 yen
Pound/dollar: DOWN at $1.2375 from $1.2495
Brent North Sea crude: DOWN 0.8 percent at $122.05 per barrel
West Texas Intermediate: DOWN 0.7 percent at $120.62 per barrel
burs/spm/lth
P.Queiroz--PC