Stock markets across Asia and Europe are bleeding red as interest rate problems return

Asian and European stock markets fell sharply on Friday after the consumer price index (CPI) showed no growth in September, with China leading the decline. Weak economic indicators from China could pose a threat to the global economy, market experts say.

European shares also fell on Friday as problems from US inflation suggested that interest rates may rise. Higher inflation figures could prompt the Federal Reserve to keep interest rates at higher levels for longer periods of time, as evidenced by today's stock market performance to curb the move, unsettled investors.

China is dragging down Asian stock markets amid economic slowdown.

Asian shares ended their rally on Friday as indexes in China, Japan and Hong Kong fell. China posted a 2.5 percent drop in its producer price index. China's benchmark CSI 300 index fell 1.05%, closing at 3,663.41.

Hong Kong's benchmark Hang Seng index fell 2.3 percent on Friday, ending a six-day bull run.

Japan's benchmark Nikkei 225 fell 0.6% to close at 32,315.99, while South Korea's Kospi fell 0.95% to 2,456.15.

European stocks fell amid the woes of US interest rate hikes

European markets ended the week lower on concerns about an interest rate hike from the Fed as well as growing concerns about economic growth.

London's benchmark FTSE 100 was down 0.3% despite higher oil prices. Given the weight of energy corporations in the FTSE, such as BP and Shell, the decline is significant.

The pan-European Stoxx 600 index fell 0.6%, ending the week lower after three consecutive days of bullish gains.