The market mood turned dark when the user price index (CPI) of the United Kingdom (UK) was published, which saw a 9% jump while the inflation rate in Canada was seen as moving rapidly.
It indirectly contributed to causing global stocks to shrink, when the USD dollar strengthened after falling 4 sessions before this.
The MSCI benchmark of worldwide shares shed 2.74% while the pan-European STOXX 600 index closed down 1.14%.
On Wall Street, the Dow Jones Industrial Average fell 3.56%, the S&P 500 lost 4.03% and the Nasdaq Composite fell 1.14%.
Some analysts predict risk assets will continue to decline towards the end of 5 months as macroeconomic uncertainty continues to shroud the market.
While risk assets declined, the safe-haven dollar was seen strengthening a day after Federal Reserve (Fed) Chair Jerome Powell endorsed an aggressive move to increase interest rates to fight inflation.
The dollar index was up 0.58% while the euro was down 0.8% at $1.0463 and the Japanese yen was up 0.92% at 128.23 per dollar.
In addition, Treasury yields fell 8.1 points at 2.890% even though market consensus remained intact if the 10-year note yield level marker fell by a 1-week high of 3.015% following Powell's comments.
The commodity summary saw gold prices little changed on the back of the market's risk-off sentiment with spot gold up 01.% at $1,816.06 per ounce.
UK and Canada CPI Data Formula
The UK inflation reading, which jumped 9%, was the highest level since 1982 if the cost of labor skyrocketed while Canadian inflation rose 6.8%, driven by increases in food and housing prices.
This will continue to encourage central banks around the world to increase utility rates, even though prices are rising rapidly around the world.
