Global Stocks Slip Amid Economy Concerns

Global stocks fell Tuesday amid lingering concerns about the health of the global economy and a potential U.S. interest-rate rise before the end of the year.

The Stoxx Europe 600 was recently 0.1% lower, following a 1% drop in U.S. stocks in the previous session as investors worried about the impact of higher interest rates on equity markets. Ultralow rates have boosted equities in recent years.

Most Asian bourses also fell Tuesday after a weak print of China's consumer inflation reignited concerns over a slowdown in the world's second-largest economy. The consumer-price index rose 1.3% in October from a year earlier, compared with a 1.6% rise in September.

"The mood of investors has turned more sour as the prospect of a Fed rate hike looms larger and a busy week of data from China began in subdued fashion," said Ian Williams, an economist at London-based broker Peel Hunt.

The Shanghai Composite Index slipped 0.2%, while Hong Kong's stocks fell 1.4%. Japan's Nikkei Stock Average was up 0.2%, buoyed by a weakening yen.

The dollar was 0.1% higher against the yen at 123.23.

Analysts said the reaction to China's weak data was fairly muted in equity markets. "I think people are now saying the China story is a little overdone," said IG analyst David Madden. "They're no longer as jittery."

In currencies, the euro was flat against the dollar at 1.0757.

In commodities, Brent crude was 0.1% weaker at $47.12 a barrel, while gold was 0.3% higher at $1,091.10.

Copper prices were 0.2% weaker after hitting a six-year low on Monday on signs of declining Chinese demand.

In corporate news, Vodafone Group PLC raised its full-year earnings guidance despite swinging to a first-half loss on infrastructure costs. Its shares were 2.2% higher in early trade.

Later Tuesday, investors will parse a U.S. small business survey and wholesale inventories. A price measure could also offer a hint at the overall direction of inflation. Federal Reserve officials have said they hope to see inflation heading toward their 2% annual target as they consider raising short-term interest rates.

Write to Chiara Albanese at [e-mail] and Riva Gold at [e-mail]

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(END) Dow Jones Newswires

November 10, 2015 05:55 ET (10:55 GMT)

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