European stocks drop, oil steadies
European stock markets fell on Wednesday as official data showed UK inflation surging to a new 40-year high. Investors remain on edge as central banks hike interest rates to fight runaway inflation, but which threatens to tip economies into recession. Oil prices steadied after recent heavy falls caused by forecasts of weaker demand on slowing economic growth, while the possibility of an Iran nuclear deal that would boost supplies. In foreign exchange, the pound firmed against the dollar as official data showed UK inflation soaring above 10 per cent. That increased expectations of a further sharp rise to the Bank of England's main interest rate, according to economists. "Markets reacted negatively to the (inflation) news, with the (London) FTSE and other European indices falling," noted City Index analyst Fawad Razaqzada. Shares in heavily-indebted cinema chain Cineworld plunged 50 per cent to 10.5 pence in London after the group warned over weaker-than-expected ticket sales. Hit hard by pandemic lockdowns in Britain and the United States, Cineworld said it was further impacted since reopenings by a "limited" number of film releases. Traders were meanwhile awaiting minutes from...