World shares mixed after latest Wall St retreat

BANGKOK — Shares gained Monday in Europe after retreating in Asia, where they tracked Wall Street’s latest decline.

Last week, U.S. shares suffered their worst setback since early December. Reports on inflation, the jobs market and retail spending have come in hotter than expected, leading analysts to raise forecasts for how high the Federal Reserve will have to take interest rates to slow the U.S. economy and cool inflation.

Higher rates pressure business activity and investment prices. So far, they do not seem to be slowing growth as much as anticipated. The S&P 500 fell 1.1% Friday to cap its third straight loss. The Dow Jones Industrial Average dropped 1% and the Nasdaq composite lost 1.7%.

“It is becoming increasingly apparent that inflation, and associated inflation expectations and wage pressures, will not decline in a predictable linear manner,” Mizuho Bank said in a…