Global equities slumped on Tuesday due to US retail sales beating expectations and China reducing rates.

The S&P 500 plummeted 0.9 percent in early trade, while the tech-focused Nasdaq Composite fell 0.8 percent.

The Stoxx Europe 600 fell 1%, the Cac 40 fell 1.2 percent, and the Dax fell 0.9 percent.

US government bond yields rose to a 10-month peak before dropping.

US retail purchases rose 0.7 percent in July, up from 0.3 percent in June and well above the 0.4 percent consensus projection.

Home Depot shares jumped 1.7 percent after its second-quarter sales decreased less than predicted.

The US Federal Reserve’s aggressive monetary tightening campaign raised the federal funds rate to a 22-year high, and strong consumer spending could imply higher interest rates for longer.

The BoE has lagged behind its US and European counterparts in cooling prices, so investors will closely watch Wednesday’s UK inflation statistics.

Sterling increased 0.4% to $1.2731. The People’s Bank of China unexpectedly lowered its one-year medium-term lending facility rate, affecting financial institution loans.