European shares fell on Tuesday as investors worried about the squeeze to economic growth from aggressive monetary policy tightening by central banks in a bid to tame rising inflation.
fell 0.5%, giving back half of Monday's gains, with tech shares leading declines.
Australia's central bank raised interest rates by the most in 22 years and flagged more tightening to battle rising prices. This comes as investors await a European Central Bank meeting and U.S. inflation data this week.The ECB has signalled rate hikes starting next month, and investors wait to see if record high inflation in May would lead to a change in stance at Thursday's meeting.
On Friday, data is expected to show a rise in May U.S. consumer prices, leading to some speculation that the Federal Reserve may need to carry on hikes beyond July. Underlining slowing economic growth, data showed German industrial orders fell more than expected in April, the third decline in a row, driven by weakened demand and heightened uncertainty due to the Russian-Ukraine conflict.