Global stocks sink on US inflation surge

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World stock markets fell Friday on fears the Federal Reserve will move more aggressively to tighten monetary policy to tame decades-high inflation.

London equities also slid as investors set aside rebounding 2021 economic growth to focus on shrinking December activity in the wake of the Omicron COVID variant.

The euro retreated versus the dollar, while oil prices rose after the International Energy Agency lifted its world oil demand forecast."It's been quite a week for the markets with a shock from US inflation growing faster than expected," said investment director Russ Mould at stockbroker AJ Bell. The 7.5-percent jump in US consumer prices last month was the fastest in 40 years and reinforced fears that the central bank is falling behind the curve in keeping it under control.

"I'd like to see 100 basis points in the bag by July 1," Bullard, who has a vote on policy this year, told Bloomberg News."I was already more hawkish but I have pulled up dramatically what I think the committee should do.""I think it is a sensible response to a surprise inflationary shock that we got during 2021 that we did not expect."

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