LONDON, March 14 Reuters Global shares slid on Tuesday as a brewing U.S. banking crisis prompted investors to downgrade their expectations for interest rate hikes, even ahead of key inflation data later in the day.

As recently as a week ago, investors were just recovering from a realitycheck that prompted many to assume that rates around the world were likely to head much higher and stay there for longer than previously expected.

In under a week, three U.S. banks have collapsed. It has been the failure of technologysector lender Silicon Valley Bank SVB that has rattled investor confidence and triggered a rush into safehaven assets like bonds and gold.

Banking stocks around the world have shed hundreds of billions of dollars in value in a matter of days, while the government bond market has seen one of its biggest rallies in decades.

The MSCI AllWorld index was down 0.5 on the day, largely due to steep declines across Asian equity markets, while in Europe shares entered a third day of declines, down 0.1.

Shortdated U.S. Treasury yields rose 14 basis points to around 4.17, but given that on Monday they posted their largest oneday drop since 1987, the rise on Tuesday still left yields at their lowest in six months.

Many have drawn parallels to the 2008 financial crisis, when indicators of financial market stress shot up and equities crumbled. But Societe Generale chief currency strategist Kit Juckes said the current situation was far more like the U.S. savings and…