Sharjah24 – AFP: Global stocks mostly fell Tuesday with Wall Street failing to extend a rally and Eurozone bourses tumbled on news that the region's inflation rate hit another record high in May.

Consumer prices in the eurozone rose by 8.1 percent in May, compared with 7.4 percent in April, official data showed, with energy surging the fastest.

The uninterrupted rise in prices in the wake of Russia's invasion of Ukraine has heaped pressure on the European Central Bank to speed up interest rate increases, as it prepares to raise borrowing costs for the first time in over a decade.

Adding to the woes: Monday's agreement by the European Union late Monday for a partial embargo of Russian oil imports pushed Brent oil prices, the European benchmark, worsening inflation worries.

"Higher inflation rates will raise serious question marks about the ECB's viewpoint on whether gradual rate increases will be enough to deal with such high price growth," market analyst Fawad Razaqzada from City Index and FOREX.com said.

"Investors are starting to project a faster pace of tightening from the ECB, which could be another factor holding stocks back."

Bourses in Paris and Frankfurt both dropped more than one percent.

Wall Street also retreated following a lackluster session, the first in a holiday-shortened week.

US shares spent most of the day in the red as investors digested data showing consumer confidence slipped in May as Americans expressed greater unease about the job market, though they remained relatively upbeat even as high inflation bites.

The losses were a disappointment after US stocks last week finally mustered weekly gains after about a month of losses.