NEW YORK, June 10 ― US and European shares slid while benchmark euro zone yields hit an eight-year high yesterday after the European Central Bank prepared to hike interest rates next month for the first time since 2011 and as pending inflation data spooked investors.
“CPI is a big number,” said Jack Ablin, chief investment officer at Cresset Asset Management LLC. “It's funny, the employment report historically has been important, but inflation is really taking centre stage.” “We think this would make monetary policy restrictive, and doubt that the euro region's economy could sustain such tight conditions, given its present challenges,” Papadakis said.
“The ECB seems to be about six months behind the Fed at least in terms of action and probably attitude, too,” Ablin said. On Wall Street, the Dow Jones Industrial Average fell 1.94 per cent, the S&P 500 lost 2.38 per cent and the Nasdaq Composite dropped 2.75 per cent.