BANGKOK — Shares slipped in Europe and Asia on Friday after benchmarks on Wall Street had their biggest drop in four weeks as investors registered disappointment over an inflation reading that came in hotter than expected.
Oil prices and U.S. futures also declined after the S&P 500 fell 1.4% Thursday following news that inflation at the wholesale level slowed by less than economists had forecast. It echoed a report on prices at the consumer level from earlier this week that suggested inflation isn’t cooling as quickly and as smoothly as hoped.
Stocks have swung between gains and losses recently on worries that persistently high inflation will push the Federal Reserve to get even more aggressive on interest rates. Higher rates can drive down inflation but also drag on investment prices and raise the risk of a serious recession.
“Continued strength in the inflation data suggests the…
