World shares lower as strong data hit hopes for dovish Fed

BANGKOK — World stocks were mostly lower on Tuesday after Wall Street pulled back as surprisingly strong economic reports highlighted the challenges the Federal Reserve faces in battling inflation.

Germany’s DAX lost 0.2% to 14,421.84 and the CAC 40 in Paris also was down 0.2%, at 6,682.03. Britain’s FTSE 100 lost 0.3% to 6,679.98. The futures for the S&P 500 and the Dow industrials were 0.1% lower.

Highlighting worries over recession, Fitch Ratings revised its forecasts for world economic growth downward on Tuesday to reflect the Fed’s and other central banks’ interest rate hikes.

The ratings agency’s Global Economic Outlook report estimated global growth at 1.4% in 2023, revised down from 1.7% in its September forecast. It put U.S. growth in 2023 at 0.2%, down from 0.5%, as the pace of monetary policy tightening increases.

China’s growth forecast was cut to a 4.1% annual pace from…