Global stock markets sink as inflation worries mount

Global stock markets have fallen for a second day, following Wall Street lower as worries about inflation mount

BEIJING -- Stock markets in London and Tokyo tumbled 2.5% on Thursday and U.S. futures were lower after a jump in American consumer prices fueled worries inflation might drag on an economic recovery. Shanghai, Frankfurt and Hong Kong also declined for a second day, following Wall Street lower. Overnight, Wall Street's benchmark S&P 500 index recorded its biggest one-day drop in three months after U.S. prices, exceeding forecasts, rose in April at their fastest year-on-year pace in 13 years. Rising prices reflect growing economic activity after last year's global shutdown to fight the coronavirus pandemic. But investors worry inflation might disrupt the recovery or prompt central banks to withdraw stimulus and near-zero interest rates.