NEW YORK/LONDON, Nov 16 (Reuters) – Global stocks slid from two-month highs and the safe-haven dollar weakened on Wednesday after stronger-than-expected U.S. retail sales clouded the inflation outlook and hopes that the Federal Reserve could ease its aggressive interest rate hikes.
Stocks in Europe pared overnight losses in Asia after Poland’s president said a missile that hit his country was probably a stray Ukrainian defense projectile, dispelling fears that it came from Russia.
U.S. equities were hurt by a dire holiday sales outlook from Target Corp (TGT.N) as investors took the opportunity after softer inflation data to book profits given the vulnerability of the economic backdrop in Europe and China.
But better-than-expected U.S. retail sales last month could help underpin the American economy in coming months and could force the Fed to retain its aggressive rate posture despite cooler than expected inflation data this week and…
