Wave of nerves as inflation and rates look sticky
U.S. dollar climbs and risksensitive currencies slide
Oil slides as investors fear rate hikes will hit demand
Euro slides as business activity stalls in France, Germany

LONDON, June 23 Reuters Global stocks were poised to end the week lower on Friday as investors bet on interest rates remaining higher for longer to quell stubborn inflation, helping to lift the dollar and send oil tumbling.

Euro zone government bond yields fell on news that German business activity slowed notably in June, while French business activity contracted this month for the first time in five months.

There was also worrying economic news in Asia with Japan39;s core consumer inflation exceeding forecasts in May.

Gold steadied after trading near a three month low and was set for its biggest weekly drop since February as the greenback was buoyed by hints from U.S. Federal Reserve Chief Jerome Powell of more rate hikes to come.

The MSCI All Country stock index was down 0.38 at 673.66 points, and off 1.6 for the week, though still up 11.5 for the year.

We are probably close to peak terminal interest rates for the Federal Reserve and Bank of England, but there is a feeling that central banks are prepared to risk a recession to try get core prices lower, said Mike Hewson, chief markets strategist at CMC Markets.

The idea that we get rate cuts in 2024 is starting to give in to the realisation that we are in for a much longer period of rates at…