LONDON (Reuters) – Global stocks fell on Thursday, tracking a slump in Asia in response to a widening crackdown on the tech sector in China and concern over the strength of the country’s economic recovery, while oil prices sagged on supply uncertainty.
The pace of economic recovery from the COVID-19 pandemic and its impact on inflation and central bank policymaking continues to drive markets, with the U.S. Federal Reserve overnight signalling no immediate plans to tighten monetary policy.
All eyes will be on the European Central Bank later in the session, when it is set to release a strategy update that could allow for higher inflation.
The MSCI’s leading index of global stocks was down 0.4% in early European trading, tracking a 1.6% decline in the equivalent index of Asia shares outside Japan to its lowest level since mid-May.
That had been fuelled by China’s move to rein in its tech giants, with the most recent being U.S.-listed Didi, which was…