Stock markets and oil prices slumped Wednesday as investors reacted to weak Chinese growth data and an unexpected rise in UK inflation.
China’s economy, the world’s second biggest after the United States, grew last year at one of its slowest paces in more than three decades.
China’s National Bureau of Statistics said that gross domestic product expanded 5.2 percent, in line with expectations.
However, official data showing UK annual inflation inched up to 4.0 percent in December from 3.9 percent the previous month confounded market forecasts of a slight reduction.
It dashed hopes the Bank of England would cut interest rates in the first half of 2024, boosting the pound against the dollar and euro.
The surprise rise in UK inflation came as traders increasingly expect the US Federal Reserve and European Central Bank (ECB) to also delay cutting rates as global inflation takes longer to come down than thought.
“Investors have…
