US markets point lower ahead of inflation data, energy sinks

U.S. futures and most global benchmarks fell Tuesday with new data dropping this week on inflation, as well as the start of the earnings season.

Futures for the Dow Jones industrial slid 0.7% and futures for the S&P 500 declined 0.5%. Oil prices fell almost 5% and are down about 18% from a month ago.

Shares in Europe declined in midday trading. Benchmarks finished lower in Tokyo, Seoul, Hong Kong and Shanghai but rose slightly in Sydney.

The euro cost $1.0040, down slightly from $1.0042, having dipped as low as $1.0004. The U.S. dollar inched down to 136.73 Japanese yen from 137.47 yen.

Both currencies have been trading at 20-year lows as the dollar has surged along with U.S. interest rates, which promise higher returns for investors.

The European common currency is close to dropping below parity, or one-to-one with the dollar. The last time the euro was below $1 was on July 15, 2002.

At midday in Europe, 18Germany's DAX fell 0.8% and Britain's FTSE 100 edged down 0.5%, while France’s CAC 40 slipped 0.4%.

In Asian trading, Japan’s benchmark Nikkei dropped 1.8% to 26,336.66. Australia’s S&P/ASX 200 gained nearly 0.1% to 6,606.30. South Korea’s Kospi slipped 1.0% to 2,317.76. Hong Kong’s Hang Seng sank 1.3% to 20,844.74, while the Shanghai Composite index shed 1% to 3,281.47 on growing concerns over COVID-19.

Adding to the pessimism, Hong Kong authorities announced they are considering implementing an electronic health code system to restrict movements of people infected with COVID-19, as well as overseas arrivals, a system similar to what's already in place in mainland China.

The highest inflation in four decades is pushing the Federal Reserve and other central banks to hike interest rates, which puts the clamps on the economy and hurts various types of...