LONDON, Jan 31 Reuters World stocks stumbled and bond yields edged lower on Tuesday as hotter than anticipated European inflation numbers jangled investor nerves ahead of a slew of earnings reports, central bank meetings, and key U.S. economic data.

Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points bps on Wednesday. Interest rate announcements are also due on Thursday from the Bank of England and the European Central Bank  and both are expected to hike rates by 50 bps.

Meanwhile, more than 100 SP 500 companies, including Apple, Amazon.com and Google parent Alphabet, are expected to report results this week, which also includes the release of closely watched U.S. employment numbers.

Tuesday sees the release of fourthquarter labour costs, while Friday brings the allimportant January nonfarm payrolls report.

Reality is setting in, said Bruno Schneller, a managing director at INVICO Asset Management in Zurich.

Equity markets may have factored in the end of central bank rate hikes, but they do not yet reflect the potential hit to earnings from a slowing economy, Schneller said.

Recent corporate results, especially 2023 guidance, indicate a negative outlook leading us to maintain a reduced position in equities, he said.

In the shorter term, there doesn39;t appear to be an obvious safe haven for investors, said Schneller.

European shares dropped on Tuesday, dented by healthcare stocks, with the Euro Stoxx index down 0.8,…