Europe39;s STOXX 600 gives up gains
Commodity, tech stocks fall
Bond yields continue to rise after euro zone inflation
Dollar climbs to twoweek high vs yen
Wall Street stocks set for small gains
LONDON, June 1 Reuters Global stocks fell and bond yields rose on Wednesday, while the dollar strengthened, as investors fretted over soaring inflation and the impact on global growth from looming interest rate rises.
Europe39;s STOXX 600 index turned negative in morning trading, giving up early gains of 0.3. British stocks fell 0.2.
To blame were drops in commoditylinked and tech stocks that outweighed gains in banks and consumer shares, with data showing German retail sales fell by more than expected in April as consumers felt the pinch of higher prices.
Soaring food and energy costs drove euro zone inflation to a recordhigh 8.1 in May, figures on Tuesday showed, stoking concern about rate rises not just in Europe but globally.
The Bank of Canada is the latest central bank set to hike interest rates, with economists expecting an increase to 1.5 from 1.0 later on Wednesday.
Market players were watching whether attempts to douse inflation by central banks across the world with tighter monetary policy would spark recessions something that could in turn see rate hikes slow.
It39;s just an incredibly uncertain environment at the moment, said Mike Bell, a global market strategist at J.P. Morgan Asset Management. In times like that, it makes sense just to moderate the…