Stagflation Fears Weigh on Global Markets Amid Mixed Economic Data

The global stock market saw mixed results on Monday as investors digested recent economic data and inflation concerns. The US S&P 500 futures were little changed, while the Dow Jones Industrial Average slipped 0.1 per cent.

In early European trading, Germany's DAX was nearly flat at 26,429.59, while Britain's FTSE 100 gained 0.2 per cent to 10,773.91. Tokyo's Nikkei 225 index rose 0.7 per cent to 69,220.25 after Japan reported its economy grew slightly faster than forecast in the April-June quarter.

The Fed has been grappling with the challenge of stagflation, high inflation coupled with stagnant economic growth. The central bank has no effective tool to address both issues simultaneously.