Stocks mixed, Europe and U.S. head lower, Asia rises
UK inflation hits 9 but sterling sinks 1
German 2year yield hits 2011 high on ECB rate hike bets
LONDON, May 18 Reuters A rebound in stocks ran out of steam on Wednesday as concerns about the economic growth outlook and rising inflation knocked sentiment, while a UK inflation reading of 9 underlined just how much higher interest rates might be headed.
European shares were mostly lower and futures on Wall Street pointed to a weaker open , .
Many analysts have characterised this week39;s sharp rally as a shortterm bounce of the sort common during a lengthier downward trend for equities. Few are willing to predict the end to selling after a bruising first five months of the year for risky assets given so much macroeconomic uncertainty.
Investor sentiment and confidence remain shaky, and as a result, we are likely to see volatile and choppy markets until we get further clarity on the 3Rs rates, recession, and risk, said Mark Haefele, chief investment officer at UBS Global Wealth Management.
By 1115 GMT, the broad Euro STOXX 600 was off 0.35, while Britain39;s FTSE 100 was 0.23 lower.
MSCI39;s broadest index of AsiaPacific shares outside Japan rose 0.68 and is on its longest winning streak since February. Japan39;s Nikkei rose 0.94 and miners led Australian shares about 1 higher.
The MSCI World Equity Index inched up 0.1 and is nearly 2 higher so far this week, but remains down 16 from its peak in January.
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