In Asian Equity Markets stocks fell on Wednesday after data showing the biggest jump in U.S. inflation in 13 years fuelled investor expectations that the Fed could exit pandemic-era stimulus earlier than previously thought. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.24 percent, as Chinese blue-chips fell 1.08 percent, Hong Kong’s Hang Seng decreased 0.7 percent and Seoul’s Kospi lost 0.21 percent. Japan’s Nikkei fell 0.38 percent, while the broader Topix lost 0.23 percent to 1,963.16. For the week so far, the Nikkei is up 2.4 percent so far, while the Topix is almost 2.7 percent higher.

In Currency Markets the dollar edged lower in early European trade Wednesday, handing back some of the previous session’s sharp gains after a jump in U.S. inflation raised expectations of an early move by the Federal Reserve to tighten monetary policy. The Dollar Index traded 0.1 percent lower at 92.698, falling back from the previous session’s high of 92.832, just below the three-month peak of 92.844 reached last week. Against Japanese yen, the dollar fell 0.1 percent to 110.48 yen. The euro rose 0.1 percent to $1.1789, while the risk-sensitive Aussie dollar rose 0.2 percent to $0.7460.

In US Equity Markets the S&P 500 and Nasdaq ended lower on Tuesday after hitting record highs earlier in the session, with investors digesting a jump in consumer prices in June and earnings from JPMorgan and Goldman Sachs that kicked off the quarterly reporting season. The Dow fell 0.31 percent to end at 34,888.79 points, while the S&P 500 lost 0.35 percent to 4,369.21. The Nasdaq Composite lost 0.38 percent to 14,677.65. Boeing Co fell 4.2 percent after the Federal Aviation Administration said late on Monday some undelivered 787 Dreamliners have a new manufacturing quality issue.

In Commodities Markets oil prices edged up on Tuesday as tight supply and expectations of a further draw in U.S. and global crude inventories provided support, though fears over the spreading COVID-19 variant capped gains. Brent crude was last up 1.58 percent, at $76.35 a barrel. U.S. crude was last up 1.47 percent, at $75.19 per barrel. Spot gold prices rose 0.05 percent, to $1,806.71 an ounce. Elsewhere, palladium eased 1 percent to $2,828.93 an ounce, while platinum fell 1.1 percent to $1,105.77. Silver shed 0.8 percent to $25.97 an ounce.

In European Equity Markets stocks eased from all-time highs on Tuesday ahead of a key U.S. inflation reading, but British banks kept UK’s FTSE 100 afloat after a central bank move to scrap curbs on dividends. The pan-European STOXX 600 index lost 0.1 percent after hitting a record high in early trading. Barclays, HSBC, and Lloyds Banking Group rose between 1.1 percent and 1.8 percent after the Bank of England scrapped pandemic-era restrictions on dividends from top lenders. UK’s FTSE 100 rose 0.3 percent, while other main regional indexes fell.

In Bond Markets long-dated U.S. Treasury yields rose on Tuesday after the Treasury Department drew weak demand for a $24 billion sale of 30-year bonds, which came after data showed inflation in June jumped more than expected. Benchmark 10-year yields rose to 1.415 percent, after getting as low as 1.343 percent earlier on Tuesday. Thirty-year note yields rose to 2.040 percent from 1.97 percent before the auction. Inflation expectations also jumped, with breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS) rising to 2.59 percent, from 2.50 percent before the inflation data.

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