European stocks slide as rate concerns resurface

European stocks slipped on Wednesday and Wall Street futures were in the red as concern that central bank tightening will stifle global growth weighed on markets.

At 7.56am GMT, the MSCI world equity index, which tracks shares in 50 countries, was up 0.1%. But Europe’s Stoxx 600 was 0.3% lower, weighed down by banks after Credit Suisse warned of a group-wide loss in the second quarter.Analysts said markets were likely to struggle for direction, with focus on the European Central Bank’s meeting on Thursday and US CPI data on Friday.

European government bond yields rose, with the benchmark German 10-year yield up 3 basis points at 1.313%.

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