U.S. CPI, Ukraine War, OPEC/IEA Demand Forecast, Drive World Markets

Global markets braced for a faster interest rate tightening by the Fed, after the inflation numbers released on Tuesday touched 8.5 percent, the highest since 1981. Comments from Russia on talks with Ukraine reaching a dead-end indicated the geopolitical crisis in eastern Europe could drag on, impacting sentiment across markets. Yields soared as markets tried to a price in a 50-basis points rate hike by the Fed in the next review. The Dollar Index touched a fresh 52-week high of 100.52. OPEC cutting its 2022 world economic growth forecast and IEA slashing its forecast for global oil demand helped contain the surge in crude prices.

Here is a snapshot of the markets across stocks, currencies, bonds, commodities and cryptocurrencies.

Asian stocks finished mixed. European indices are mostly trading lower. American stock futures indicate mild gains on opening. The Dollar Index continued to rise. Bond yields surged as investors priced in interest rate hike expectations. Crude prices moved higher as supply concerns continued unabated. Gold edged up on safe-haven demand but the dollar’s strength capped gains. Cryptocurrencies recovered.

Stock Indexes:

DJIA (US30) at 34,340.10, up 0.35%
S&P 500 (US500) at 4,414.10 up 0.38%
Germany’s DAX at 13,997.03, down 0.91%
U.K.’s FTSE 100 at 7,577.73, up 0.01%
France’s CAC 40 at 6,508.03, down 0.45%
Euro Stoxx 50 at 3,804.55, down 0.70%
Japan’s Nikkei 225 at 26,843.49, up 1.93%
Australia’s S&P ASX 200 at 7,479.00, up 0.34%
China’s Shanghai Composite at 3,186.82, down 0.82%
Hong Kong’s Hang Seng at 21,374.37, up 0.26%

Currencies:

EURUSD at 1.0828, up 0.02%
GBPUSD at 1.3001 up 0.03%
USDJPY at 126.14, up 0.63%
AUDUSD at 0.7422, down 0.50%
USDCAD at 1.2646, up 0.02%
Dollar Index at 100.43, up 0.13%

Ten-Year Govt Bond Yields:

U.S. at 2.765%, up 1.40%
Germany at 0.8255%, up 4.49%
France at 1.324%, up 1.77%
U.K. at 1.8740%, up 3.88%
Japan at 0.236%, down 0.63%

Commodities:

Crude Oil WTI Futures (May) at $101.02, up 0.42%
Brent Oil Futures (June) at $105.21, up 0.54%
Gold Futures (Jun) at $1,978.65, up 0.13%

Cryptocurrencies:

Bitcoin at $40,138.39, up 0.05%
Ethereum at $3,056.62, up 1.20%
BNB at $420.49, up 3.26%
XRP at $0.7156, up 1.43%
Solana at $103.91, up 1.08%

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