BEIJING—Global stock markets declined Thursday after signs of enduring upward pressure on U.S. and European prices raised expectations that interest rates will stay higher for longer.
London, Shanghai, Frankfurt, and Tokyo retreated. Oil prices fell.
Wall Street futures were lower after a survey showed prices paid by U.S. manufacturers rose in February for the first time in five months despite rate increases to cool economic activity and surging inflation.
That prompted traders to raise forecasts for how high the Federal Reserve might hike rates and for when cuts might start.
“Inflation expectations are climbing again,” said Brian Levitt of Invesco in a report. “The Fed pause may not be coming now until the middle of the year, at the earliest.”…