Tariffs Stir Inflation Concerns Across Global Markets

European stocks experienced a mixed reaction on Wednesday following U.S. economic reports indicating tariffs were contributing to inflation, leading investors to reassess rate-cut predictions.

Concerns were heightened as U.S. consumer price data for June showed increased costs, while President Trump's tariff threats instilled caution among global markets.

The MSCI World Equity index dropped 0.1%, and the pan-European STOXX 600 fell by 0.2%. Meanwhile, the pound rose slightly against the dollar, despite Britain's inflation rate reaching a yearly high.

(With inputs from agencies.)