Global stocks diverge on renewed US inflation fears [Video]

Stock markets diverged and the dollar rose Wednesday after data pointed to a robust US economy, further denting hopes of several more cuts to interest rates in the world’s biggest economy.

The latest readings added to worries about a fresh uptick to US inflation, already on traders’ radar owing to Donald Trump’s pledges to slash taxes, regulations and immigration when he returns to the White House this month.

“A mixture of macro fears for inflation and concerns about what the next Trump presidency may hold are dominating markets,” said Kathleen Brooks, research director at trading group XTB.

Asian stock markets closed mostly down Wednesday while the bulk of European indices gained nearing the half-way stage.

All three main indices on Wall Street ended in the red Tuesday, with the Nasdaq and S&P 500 each shedding more than one percent.

Tech firms, which had led a surge on Monday, were again …