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- England return to winning ways in Nations League, Austria thrash Norway
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- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
- King and Lewis propel West Indies to T20 triumph over Sri Lanka
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- 'I still plan to compete and play next season,' says Djokovic
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- Chepngetich shatters women's marathon world record in Chicago
- Kamindu and Asalanka power Sri Lanka to 179 against West Indies
- Chepngetich shatters women's marathon world record as Korir wins in Chicago
- Spain send injured Yamal home 'to prioritise player's health'
- In milestone, SpaceX 'catches' megarocket booster after test flight
- Iraq walks fine line with pro-Iran factions to avoid war
- Race four abandoned after New Zealand breeze into 3-0 lead in America's Cup
- West Indies win toss, put Sri Lanka in to bat in first T20
- Sudan rescuers say air strike killed 23 in Khartoum market
- Netanyahu tells UN to move Lebanon peacekeepers out of 'harm's way'
- Bangladeshi Hindus defy attack worries to celebrate festival
- Kiwis three up in America's Cup as Ineos pay for time penalty
- In a first, SpaceX 'catches' megarocket booster after test flight
- Dominant England crush Scotland at Women's T20 World Cup
- Dropped: The rise and fall of Pakistan batting maestro Babar Azam
- Israel fights Hezbollah on the ground, pounds Lebanon from the air
- Sabalenka outlasts local hero Zheng to win third Wuhan Open title
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Former Pakistan captain Azam dropped for second England Test
- 'Opportunist' Dupont dazzles on Toulouse return
Stocks slump further before key US inflation update
Stock markets tumbled further Friday as investors worried about recession risks stemming from decades-high inflation and rising interest rates.
With major global equity indices shedding about 1.5 percent, focus turned to the release later in the day of US consumer price figures.
"There is little respite at present from inflationary concerns, giving investors little room for manoeuvre in navigating the darkening economic clouds," noted Richard Hunter, head of markets at Interactive Investor.
The European Central Bank on Thursday said it would raise interest rates next month to combat strong inflation, finally catching up with other major central banks that are tightening borrowing costs to try and cool the pace of consumer price rises.
Economists warn that surging inflation, driven by rocketing energy prices, could push top economies into recession.
Adding to the unease was news that officials in China had once again locked down millions of people for Covid testing owing to another flare-up in cases, dealing a blow to hopes for an economic reopening.
"Warning signs about the economy are emerging as weekly (US) jobless claims are starting to rise, China's Covid situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing," said Edward Moya, analyst at OANDA trading group.
"It seems reductions in global growth forecasts will become a steady theme over the next few months and that should complicate how much more tightening we see from central banks," he added.
Moya said the darkening economic outlook could provide an argument for the Fed to apply the brakes to hiking US interest rates later in the year.
With prices having surged for much of this year, central banks have been forced to withdraw the vast pandemic stimulus that helped fuel a rally across stock markets to record or multi-year highs.
The US Labor Department is set to release the May consumer price index (CPI) data on Friday, with analysts saying the data may show a modest slowdown in the torrid annual pace.
US consumer prices jumped 8.3 percent in the 12 months ending in April.
One bright note Friday was data showing that China's producer price inflation eased last month to its lowest level in more than a year.
- Key figures at around 1045 GMT -
London - FTSE 100: DOWN 1.3 percent at 7,382.24 points
Frankfurt - DAX: DOWN 1.5 percent at 13,980.12
Paris - CAC 40: DOWN 1.6 percent at 6,257.33
EURO STOXX 50: DOWN 1.8 percent at 3,657.84
Tokyo - Nikkei 225: DOWN 1.5 percent at 27,824.29 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 21,806.18 (close)
Shanghai - Composite: UP 1.4 percent at 3,284.83 (close)
New York - Dow: DOWN 1.9 percent at 32,272.79 (close)
Euro/dollar: DOWN at $1.0600 from $1.0620 late Thursday
Euro/pound: UP at 85.13 pence from 84.98 pence
Dollar/yen: DOWN at 133.84 yen from 134.40 yen
Pound/dollar: DOWN at $1.2450 from $1.2495
Brent North Sea crude: UP 0.8 percent at $124.09 per barrel
West Texas Intermediate: UP 0.5 percent at $122.17 per barrel
P.Santos--AMWN