Stocks head into stormy October, dollar defies ugly mood

  • European shares hit lowest since mid-July
  • Wall Street also heads for weaker open
  • Stagflation spectre knocks bond yields from 4-month peak
  • China power shortage, regulatory crackdown rattled markets

LONDON, Oct 1 (Reuters) – European stocks sank to two-month lows on Friday after slides in Asia and on Wall Street, with euro zone inflation data expected to hit a 13-year high to compound investor fears over surging prices combining with stuttering growth.

On the first day of October, the month for some of history’s most infamous market routs, the STOXX (.STOXX) index of 600 companies fell 0.9%, hitting its weakest level since mid-July.

The MSCI’s gauge of stocks across the globe (.MIWD00000PUS) shed 0.4%, with U.S. stock futures pointing to further falls.

With stellar economic growth figures now in the rear view mirror, markets were looking ugly going into October, Michael Hewson, chief markets analyst at CMC Markets, said.

Data overnight showed that Asia’s…

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