NEW YORK, March 10 (Reuters) – Global stock markets fell on Thursday as U.S. inflation hit nearly 8%, likely solidifying the case for an interest rate hike by the Federal Reserve US and that the European Central Bank has accelerated its exit. of its massive stimulus program.

The data showed that consumer inflation in the United States came in at an annualized 7.9% in February, in line with analysts’ expectations. Wall Street fell on the data, giving up some of the gains seen in the previous session’s relief rally. Read more

Eurozone stocks tumbled to session lows on Thursday after the ECB surprised markets by saying it would end asset purchases in the third quarter, and ceasefire talks between Moscow and Kiev have not advanced.

The euro pulled back overnight gains after the ECB announcement, and the dollar strengthened following the US inflation report. Read more

“What is the response from central banks? They are increasing,” Jeff Klingelhofer, co-head of investments at Thornburg Investment Management. “Unraveling a decade of easy policy and implicit central bank puts (will) undoubtedly lead to increased volatility in asset markets.”

The MSCI Global Stocks Gauge (.MIWD00000PUS) was down 0.65% at 10:35 a.m. EST (1535 GMT).

In the United States, the Dow Jones Industrial Average (.DJI) fell 323.32 points, or 0.97%, the S&P 500 (.SPX) lost 50.68 points, or 1.18% and the Nasdaq Composite (.IXIC) fell 236.67 points, or 1.79%.

The pan-European STOXX 600 index (.STOXX) lost 1.25%.

The global trading day began with a positive Asian session on the prospect of the resumption of diplomatic talks between Russia and Ukraine for the first time since the invasion of Moscow began on February 24.

But the two countries have made no apparent progress toward a ceasefire or on a humanitarian corridor from the southern Ukrainian port of Mariupol. Read more

Further talks with the EU were due to take place on Thursday, with the leaders due to hold initial talks at a summit from Thursday evening on a joint investment plan to bolster the bloc’s independence in defense areas. and energy.

OIL MILK

The dollar index rose 0.548%, with the euro down 0.86% at $1.098 after its strongest day a session earlier in nearly six years.

Oil rebounded in volatile trading after falling more than 12% on Wednesday, after the United Arab Emirates backtracked on statements that OPEC and its allies could increase production to help close the gap. exports from Russia.

U.S. crude recently rose 0.52% to $109.26 a barrel and Brent to $112.64, up 1.35% on the day.

European Union leaders will gradually stop buying Russian oil, gas and coal, a draft statement said on Thursday, as the bloc seeks to reduce its dependence on Russian energy sources, following a ban from the United States. Read more

Other riskier assets such as cryptocurrencies also fell, with bitcoin down 6.5%.

Reporting by Elizabeth Dilts Marshall in New York, with additional reporting by Tom Wilson; Editing by Sam Holmes, Raju Gopalakrishnan, Raissa Kasolowsky and Alex Richardson

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