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Inflation & Interest Rate Worries Drive Down Asian & European Stocks

Stock and commodity prices fell sharply in Asia and Europe Tuesday as investors worried that rising inflation and interest rates might cause a global economic slowdown.

Stocks in Japan and India fell more than four percent at the close, European stocks finished about two percent down, but U.S. stocks were little changed in mid-day trading.

Investors are worried that signs of inflation will prompt the U.S. and other central banks to continue raising interest rates, which could hurt corporate profits.

Prices for crude oil and gold also fell.

Some information for this report was provided by AP.