# Global stock markets slip on inflation, tax, regulation worries
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-13
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global Stock Markets Dip on Inflation and Tax Concerns
Meta Description: Read the latest on world stock markets, inflation worries, and tax changes for the biggest companies. Stay informed with Reuters' insights.
URL: https://financedigest.com/global-stock-markets-slip-on-inflation-tax-regulation-worrieshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-13t154642z1lynxmpeh8c0p4rtroptp4usa-stocks-1736837898351-compressed.jpg)

By Sujata Rao and Elizabeth Dilts Marshall

NEW YORK (Reuters) – World stock markets edged lower on Monday on worries over inflation and moves to tax the world’s biggest companies, as investors awaited U.S. consumer [inflation data](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data") due out Tuesday.

Leading U.S. House of Representatives Democrats said they are seeking to [raise the tax rate](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") on corporations to 26.5%, up from the current 21%.

The U.S. consumer price [data due out on Tuesday will give a broad picture of the economy’s progress ahead of the Federal Reserve’s meeting next week](https://www.financedigest.com/dollar-dips-ahead-of-inflation-data-later-this-week.html "Dollar dips ahead of inflation data later this week").

The MSCI [world equity](https://www.financedigest.com/world-equities-fall-u-s-treasury-yields-rise-after-hawkish-fed.html "World equities fall, U.S. Treasury yields rise after hawkish Fed") index, which tracks shares in 45 nations, shed 0.22%, while U.S. [stocks were mixed](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data").

The Dow Jones [Industrial Average](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") rose 0.4% and the S&P 500 fell 0.17%. The Nasdaq Composite dropped 0.4%, as [investors pivoted away from major technology stocks](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") to sectors more likely to benefit from an economic bounce later this year.

The [dollar climbed to a two-week peak](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps") against a basket of major currencies as investors priced in the possibility that the Federal would reduce its asset purchases.

[“Investors are grappling with an unusually wide range of potential economic](https://www.financedigest.com/hotel-investors-should-they-be-worried-about-a-potential-economic-pause-delving-into-inflation-interest-rates-recession-etc.html "‘Hotel Investors – should they be worried about a potential economic pause?’ delving into inflation, interest rates, recession etc") outcomes beyond the post-pandemic restart, reflected in frequent shifts in equity market leadership and volatile bond yields,” said Vivek Paul, senior portfolio strategist at BlackRock Investment Institute.

The [yield on 10-year Treasury](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease") notes was down 2 basis points to 1.321%.

European [stocks ended higher for the first time in five days on hopes that a strong euro zone economic](https://www.financedigest.com/stocks-falter-as-economic-worries-nag-nz-delivers-big-rate-hike.html "Stocks falter as economic worries nag, NZ delivers big rate hike") recovery can outweigh risks of a global slowdown. The pan-European STOXX 600 index was up 0.3% after hitting a three-week [low last week](https://www.financedigest.com/dollar-steadies-near-16-week-low-yuan-set-for-biggest-weekly-gain-since-2005.html "Dollar steadies near 16-week low, yuan set for biggest weekly gain since 2005").

[Asian stocks](https://www.financedigest.com/asian-stocks-rally-as-bank-jitters-calm-alibaba-lifts-mood.html "Asian stocks rally as bank jitters calm, Alibaba lifts mood") fell earlier in the day following news of a fresh regulatory crackdown on Chinese firms.

[China fired](https://www.financedigest.com/china-battles-forest-fires-as-fears-linger-over-harvest.html "China battles forest fires as fears linger over harvest") a fresh regulatory shot at its tech giants, telling them to end a long-standing practice of blocking each other’s links on their websites. The Financial Times also reported that [China is aiming to break](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") up the payments app Alipay.

The Chinese blue-chip index fell 0.5% and MSCI’s broadest index of Asia-Pacific [shares outside](https://www.financedigest.com/outside-door-handle-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Outside Door Handle Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") Japan was 0.78% lower. Japan’s Nikkei rose 0.22%.

The core reading of the U.S. consumer [price index is expected to show a rise](https://www.financedigest.com/ecb-survey-shows-rising-inflation-expectations-despite-energy-price-falls.html "ECB survey shows rising inflation expectations despite energy price falls") of 0.3% in August, down from 0.5% the previous month and 0.9% in June.

The U.S. Federal Reserve is [paying close attention to price pressures as it mulls when to begin to reduce its massive](https://www.financedigest.com/in-inflation-hit-germany-massive-strike-over-pay-to-cripple-transport.html "In inflation-hit Germany, massive strike over pay to cripple transport") bond holdings and how soon to begin lifting rates from near zero. It also remains on the lookout for any signs that [price pressures](https://www.financedigest.com/heavy-norwegian-gas-maintenance-adds-to-energy-price-pressure.html "Heavy Norwegian gas maintenance adds to energy price pressure") may broaden.

The general air of risk aversion helped [lift the dollar](https://www.financedigest.com/shares-steady-dollar-dips-as-us-holiday-lifts-rates-gloom.html "Shares steady, dollar dips as US holiday lifts rates gloom") index to 92.69, up 0.12%.

[Oil prices](https://www.financedigest.com/oil-prices-steady-after-u-s-stockpile-swell.html "Oil prices steady after U.S. stockpile swell") rose to six-week highs as U.S. output remains slow to [return two weeks](https://www.financedigest.com/catwalk-shows-return-at-hybrid-london-fashion-week.html "Catwalk shows return at hybrid London Fashion Week") after Hurricane Ida slammed into the Gulf Coast and worries another storm could affect output in Texas this week.

Brent crude settled up $0.59, or up 0.81%, at $73.51 a barrel. U.S. crude settled up $0.73, or up 1.05%, at $70.45 per barrel.

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/9135-450x273-1736837898238-compressed.jpg)

Graphic: Global [Oil Demand](https://www.financedigest.com/oil-falls-on-demand-worry-as-fed-make-or-break-moment-approaches.html "Oil falls on demand worry as Fed ‘make or break moment’ approaches") Growth Forecasts: https://graphics.reuters.com/GLOBAL-OIL/lbvgngrzdpq/chart.png

(Reporting by Sujata Rao in [London and Elizabeth Dilts Marshall in New York; additional reporting by Wayne Cole in Sydney and Dhara Ranasinghe in London; editing by Emelia Sithole-Matarise, Will Dunham, Chizu Nomiyama and Dan Grebler)](https://www.financedigest.com/new-york-catches-up-with-london-to-head-citys-global-centres-survey.html "New York catches up with London to head City’s global centres survey")


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---