European stock markets dip as inflation concerns zoom larger
European stock markets opened low on Tuesday trade as inflation concerns worried investors.
Germany’s DAX futures contract slid 0.4%. CAC 40 futures in France lowered 1.1% and the FTSE 100 futures contract in the U.K. dipped 1.1%.
The Dow Jones Industrial Average closed 0.1%, or 35 points, lower Monday, ending its five-day win streak. The losses were more pronounced in the other indices, with the S&P 500 1% lower and the tech-heavy Nasdaq Composite particularly hard hit, lost 2.6%.
Investors turned away from longer-duration growth stocks due to the growing inflation concerns. Commodity prices also spiked, adding to worries that the Federal Reserve will be hands tied in tightening its ultra-easy monetary policies earlier than it is currently guiding for.
In corporate news, German conglomerate Thyssenkrupp upgraded its full-year outlook for the second time in three months, bolstered by a global economic recovery that drove demand for steel, car parts, and materials.