Global stock markets experienced a downturn on Tuesday, influenced by a decline on Wall Street triggered by a report indicating higher-than-expected spending by American consumers. This surge in spending suggests a robust U.S. economy, potentially preventing a significant drop in inflation that could prompt the Federal Reserve to consider cutting interest rates. The resulting high interest rates and bond yields have negatively impacted various investment sectors.
In Europe, major indices such as Germany's DAX, France's CAC 40, and the UK's FTSE 100 all recorded losses. Meanwhile, China, the world's second-largest economy, reported a surprisingly rapid 5.3% annual growth rate in the first quarter, although signs of economic slowdown emerged in March, including declining house prices and weakened industrial output.
