European stocks tumble as risk on mood evaporates
Oil prices slump over 4 ahead of U.S. cap move
Bond yields drop but euro zone spreads widen
Dollar bulls send yen to new 24year low

LONDON, June 22 Reuters World stock markets and oil prices hit the skids on Wednesday as the persistent palpitations about rising interest rates and recessions struck again, while the Japanese yen hit a fresh 24year low against a seemingly unstoppable U.S. dollar.

The enthusiasm that had given Wall Street its best day in over a month on Tuesday was suddenly gone as Europe opened 1.5 lower and Brent crude prices plunged 4 following what had also been a downbeat Asian session.

Firedup dollar bulls weren39;t taking any prisoners either on bets that the head of the Federal Reserve, Jay Powell, will reiterate to Washington later the need to jack up U.S. rates hard and fast.

As well as compounding the yen39;s woes, it knocked the euro down 0.3, Norway39;s oilsensitive crown slumped 1.3 and Britain39;s pound dropped 0.7 as data confirmed inflation there is now running at a 40year high of 9.1.

It is remarkable how quickly the market has turned again after that little squeeze up in sentiment yesterday, said Saxo Bank FX strategist John Hardy.

The commodity market seems to be calling a global recession, he added. And the dollar is pivoting to strength as a safehaven.

Those recession worries were also showing in the bond markets where U.S. and German government bond yields fell as traders…