LONDON: US and European stock markets mostly sank Monday after a mixed Asian session, as investors tracked weak Chinese data and fears that high inflation will spell tighter global monetary policy.
China's economic growth eased to 4.9 percent in July-September, slower than forecasts, as a crackdown on its property sector and an energy crisis began to bite.
"Investors were a bit cautious with earnings season ramping up, while ongoing concerns about inflation also held the markets back a touch," said ThinkMarkets analyst Fawad Razaqzada.
"Meanwhile, more signs emerged that growth is weakening at the world's second largest economy, China," he added.
Elsewhere Monday, oil prices hit multi-year peaks on tight supplies and soaring demand, before giving up their gains.
CMC Markets UK analyst Michael Hewson said "the optimism of last week has given way to concerns that rising energy prices could well translate into weaker growth, as well as the risk of some possible policy tightening by central banks to help anchor future inflation expectations."
While Europe's main markets ended firmly in the red, by late morning the Dow was nearly at the break-even point and both the S&P 500 and Nasdaq Composite were slightly positive.
Bitcoin rose above $62,800, with optimism that US regulators will make the cryptocurrency more attractive to traditional investors, before pulling back to sit under $62,000.
It had hit its all-time high of $64,870 in April before plunging on Chinese regulatory concerns.
Traders on Monday assessed weekend remarks from European Central Bank chief Christine Lagarde and Bank of England (BoE) boss Andrew Bailey, against a backdrop of simmering inflationary pressures.
Lagarde stated that high inflation was "largely transitory", indicating the ECB's supportive monetary policy would continue.
European stocks mark best week in seven months
In contrast, Bailey warned that the BoE might "have to act" to curb rising inflation, signalling its main interest rate might rise soon from its record-low 0.1 percent.
"The difference between two central bank governors could hardly be any more pronounced," noted Commerzbank analyst Ulrich Leuchtmann.
Rising interest rates increase borrowing costs for companies, which can weigh on their share prices.
Some central banks -- including in South Korea and New Zealand -- have recently hiked borrowing costs.
"Rising inflation pressures are increasingly putting the pressure on central banks to act," warned Mahoney.
Low interest rates and huge central bank stimulus has helped to prop up the economy during the pandemic.
But the US Federal Reserve is expected to begin paring its stimulus before the end of the year.
Key figures around 1530 GMT
New York - Dow: DOWN less than 0.1 percent at 35,281.16 points
EURO STOXX 50: DOWN 0.8 percent at 4,151.40
London - FTSE 100: DOWN 0.4 percent at 7,203.83 (close)
Frankfurt - DAX: DOWN 0.7 percent at 15,474.47 (close)
Paris - CAC 40: DOWN 0.8 percent at 6,673.10 (close)
Tokyo - Nikkei 225: DOWN 0.2 percent at 29,025.46 (close)
Hong Kong - Hang Seng Index: UP 0.3 percent at 25,409.75 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,568.14 (close)
Euro/dollar: UP at $1.1604 from $1.1601 at 2100 GMT
Pound/dollar: DOWN at $1.3714 from $1.3751
Euro/pound: UP at 84.61 pence from 84.37 pence
Dollar/yen: UP at 114.29 yen from 114.22 yen
Brent North Sea crude: DOWN 0.3 percent at $84.58 per barrel
West Texas Intermediate: UP less than 0.1 percent at $82.35 per barrel
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