(Updates prices, adds closing prices for oil, European index,
fresh market commentary)
NEW YORK, Sept 13 (Reuters) - World stock markets edged
lower on Monday on worries over inflation and moves to tax the
world's biggest companies, as investors awaited U.S. consumer
inflation data due out Tuesday.
Leading U.S. House of Representatives Democrats said they
are seeking to raise the tax rate on corporations to 26.5%, up
from the current 21%.
The U.S. consumer price data due out on Tuesday will give a
broad picture of the economy's progress ahead of the Federal
Reserve's meeting next week.
The MSCI world equity index, which tracks
shares in 45 nations, shed 0.22%, while U.S. stocks were mixed.
The Dow Jones Industrial Average rose 0.4% and the
S&P 500 fell 0.17%. The Nasdaq Composite dropped
0.4%, as investors pivoted away from major technology stocks to
sectors more likely to benefit from an economic bounce later
The dollar climbed to a two-week peak against a basket of
major currencies as investors priced in the possibility that the
Federal would reduce its asset purchases.
"Investors are grappling with an unusually wide range of
potential economic outcomes beyond the post-pandemic restart,
reflected in frequent shifts in equity market leadership and
volatile bond yields," said Vivek Paul, senior portfolio
strategist at BlackRock Investment Institute.
The yield on 10-year Treasury notes was down 2
basis points to 1.321%.
European stocks ended higher for the first time in five days
on hopes that a strong euro zone economic recovery can outweigh
risks of a global slowdown. The pan-European STOXX 600 index
was up 0.3% after hitting a three-week low last week.
Asian stocks fell earlier in the day following news of a
fresh regulatory crackdown on Chinese firms.
China fired a fresh regulatory shot at its tech giants,
telling them to end a long-standing practice of blocking each
other's links on their websites. The Financial Times also
reported that China is aiming to break up the payments app
The Chinese blue-chip index fell 0.5% and MSCI's
broadest index of Asia-Pacific shares outside Japan
was 0.78% lower. Japan's Nikkei rose
The core reading of the U.S. consumer price index is
expected to show a rise of 0.3% in August, down from 0.5% the
previous month and 0.9% in June.
The U.S. Federal Reserve is paying close attention to price
pressures as it mulls when to begin to reduce its massive bond
holdings and how soon to begin lifting rates from near zero. It
also remains on the lookout for any signs that price pressures
The general air of risk aversion helped lift the dollar
index to 92.69, up 0.12%.
Oil prices rose to six-week highs as U.S. output remains
slow to return two weeks after Hurricane Ida slammed into the
Gulf Coast and worries another storm could affect output in
Texas this week.
Brent crude settled up $0.59, or up 0.81%, at $73.51
a barrel. U.S. crude settled up $0.73, or up 1.05%, at
$70.45 per barrel.
(Reporting by Sujata Rao in London and Elizabeth Dilts Marshall
in New York; additional reporting by Wayne Cole in Sydney and
Dhara Ranasinghe in London; editing by Emelia Sithole-Matarise,
Will Dunham, Chizu Nomiyama and Dan Grebler)