Arizona Tribune - Stock markets slip on auto woes, economy fears

Share prices of carmakers were hit hard after Tesla posted tumbling first-quarter profits as steep price cuts ate into margins at Elon Musk's electric auto company.

European indices followed Asia into fresh losses after a tepid session on Wall Street, while oil prices fell further and the dollar declined.

"European markets are in the red on Thursday in what continues to be a choppy week of trading driven by economic and interest rate uncertainty," said analyst Craig Erlam at trading firm Oanda.

Stubbornly high UK inflation and worries over more central bank moves to tame rampant consumer prices dented markets on Wednesday.

Higher borrowing costs curb consumer spending and ramp up the cost of credit for businesses and individuals alike, derailing economic activity.

"Investors are once again worried about the outlook for the global economy," added Russ Mould, investment director at AJ Bell.

"Markets have stalled over the past few days, with the latest corporate updates failing to move the dial."

- Carmakers hit the skids -

Shares in French giant Renault shed almost seven percent despite strong first-quarter earnings, while peer Stellantis sank four percent.

In Frankfurt, BMW, Mercedes-Benz and Volkswagen each skidded about three percent lower.

"Margins/demand being stuffed is not just Tesla-specific. More price cuts to come affects all," Finalto analyst Neil Wilson told AFP.

Elsewhere on Thursday, Swedish truck-maker Volvo saw jumping first-quarter orders and upgraded its annual sales forecast.

In the telecoms sector, Finnish group Nokia reported weaker than expected earnings as cash-strapped consumers reined in spending.

Results from US regional banks were also in focus after last month's turmoil saw three go under and Credit Suisse taken over.

Markets have in recent days been optimistic that central banks, and particularly the US Federal Reserve, will be able to wind down their rate-hiking drive soon after data showed inflation slowing down.

But investors have been jolted by news this week of UK inflation surging more than 10 percent on-year in March owing to soaring food costs.

The news has fanned bets that the Bank of England will hike rates again at its next meeting in May.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.1 percent at 7,888.69 points

Frankfurt - DAX: DOWN 0.8 percent at 15,766.88

Paris - CAC 40: DOWN 0.4 percent at 7,516.07

EURO STOXX 50: DOWN 0.5 percent at 4,372.41

Tokyo - Nikkei 225: UP 0.2 percent at 28,657.57 (close)

Hong Kong - Hang Seng Index: UP 0.1 percent at 20,396.97 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,367.03 (close)

New York - Dow: DOWN 0.2 percent at 33,897.01 (close)

Euro/dollar: UP at $1.0975 from $1.0955 on Wednesday

Pound/dollar: UP at $1.2441 from $1.2439

Dollar/yen: DOWN at 134.53 yen from 134.72 yen

Euro/pound: UP at 88.21 pence from 88.07 pence

West Texas Intermediate: DOWN 1.6 percent at $77.90 per barrel

Brent North Sea crude: DOWN 1.5 percent at $81.90 per barrel

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A.Taylor--AT