Stock markets slid on Wednesday, mirroring Wall Street losses, as strong economic data fanned expectations that US interest rates will continue to rise and stay high for some time.

The Federal Reserve on Wednesday publishes minutes from its last policy meeting, likely to offer clues on the outlook for US borrowing costs. The dollar rose against the euro and pound but dipped against the yen ahead of the release.

Oil and European gas prices both fell on renewed recession risks. 

"The higher (US) interest rates stay, the less relative appeal stocks have, particularly as we are about to hit some serious earnings headwinds," Neil Wilson, analyst at trading firm Finalto, told AFP.

The minutes will be closely scrutinised "in the wake of data showing a more resilient (US) labour market and stickier inflation than many had expected", he added.

Adding to the dark mood were downbeat 2023 projections from retail titans Walmart and Home Depot, which on Tuesday noted the impact of inflation and higher interest rates on consumer health.

But recent data has shown the US economy to be resilient, essentially putting to bed any talk of the Fed pausing its rate hikes and even cutting rates by the end of the year.

"A tight labour market and resilient consumer demand could goad the Federal Reserve to maintain its rate hiking campaign into the summertime," said Jeffrey Roach, chief economist for LPL Financial. "Investors should expect volatility until markets and central bankers come to agreement on the expected path for interest rates."

A tight labour market and resilient consumer demand could goad the Federal Reserve to maintain its rate hiking campaign into the summertime- Jeffrey Roach, chief economist for LPL Financial

All three main New York indices plunged on Tuesday, with data showing the US economy remained in rude health despite almost a year of rate hikes and elevated inflation.