Stocks Fall, Dollar Gains as US Inflation Prompts 100 bps Hike Bets

People pass by an electronic screen showing Japan's Nikkei share price index inside a conference hall in Tokyo, Japan, on June 14, 2022. Issei Kato/Reuters

LONDON—European shares dropped in early trading on Thursday and the safe-haven dollar was up after the latest red-hot U.S. inflation reading increased investor caution about Federal Reserve rate hikes.

Wednesday’s data showed U.S. consumer prices jumped 9.1 percent year-on-year in June, up from May’s 8.6 percent rise.