Global stock markets sink as inflation worries mount

BEIJING (AP) - Global stock markets have fallen for a second day, following Wall Street lower as worries about inflation mount. London and Tokyo both lost more than 2% and Shanghai, Frankfurt and Hong Kong also declined.

Wall Street futures were down after the benchmark S&P 500 index recorded its biggest one-day drop in three months following a jump in U.S. inflation.

The price rises reflect growing economic activity and pent-up consumer demand after last year's global shutdown to fight the coronavirus pandemic. But investors worry inflation might weigh on an economic recovery or prompt central banks to withdraw stimulus and near-zero interest rates.