It’s starting to look a bit rough for stocks at the moment as the fallout from the US CPI data continues to reverberate.

S&P 500 futures are down to the lows for the day, dropping by nearly 1% now as risk starts to falter in European morning trade. Regional indices are also caught in the crossfire with the DAX now down 0.9%, CAC 40 down 1.2%, and Italy’s FTSE MIB leading the declines with a drop of 2.2% – not helped by domestic political uncertainty.

After the Bank of Canada decision yesterday and Fed policymakers opening the door to a 100 bps move as well, it is spooking markets a little amid prospects of major central banks frontloading rate hikes in a more aggressive manner.

This article was written by Justin Low at www.forexlive.com.