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Inflation and Interest Rate Worries Drive Down Asian, European Stocks
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http://enews.voanews.com/t?ctl=129858E:3919ACA Concern focuses on
report about US  inflation, painting mixed picture of economy Stock
and commodity prices fell sharply in Asia and Europe Tuesday as
investors worried that rising inflation and interest rates might cause
a global economic slowdown.

Stocks in Japan and India fell more than four percent while South
Korea, Hong Kong and Singapore were off two percent or more.

European stocks were down around 1.5 percent in afternoon trading,
while U.S. stocks were little changed in morning trading.

Concern was focused on a report about U.S. inflation at the wholesale
level, which painted a mixed picture of the economy. Overall inflation
moderated, but prices rose outside the volatile food and energy area.

Another inflation report is due out later this week, and U.S. central
bank officials will study both reports as they consider another
possible interest rate increase in two weeks. Some information for
this report was provided by AP.


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