In Asian Equity Markets stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth. Chinese blue chips fell 0.84 percent, and Hong Kong’s Hang Seng suffered a 2.9 percent slide. Japan’s Nikkei lost 2.78 percent, and South Korea’s Kospi declined 2.78 percent. New Zealand’s stock benchmark was off 2.1 percent. Australian markets were closed for a holiday.

In Currency Markets the dollar was up on Monday morning in Asia as Friday’s red hot inflation data suggested more aggressive monetary tightening from the U.S. Federal Reserve. The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.29 percent to 104.45. Against the Japanese yen, the dollar was up 0.30 percent to 134.82. The yen rallied briefly late on Friday when Japan’s government and the central bank said that they were concerned about the yen’s recent sharp falls. The Aussie dollar fell 0.30 percent to $0.7029, and the kiwi fell 0.39 percent to $0.6345.

In US Equity Markets stocks were lower after the close on Friday, as losses in the Technology, Consumer Services and Financials sectors led shares lower. The Dow fell 2.73 percent, while the S&P 500 index lost 2.91 percent, and the NASDAQ Composite index declined 3.52 percent. The best performers of the session on the Dow were Walmart Inc, which rose 0.56 percent or 0.68 points to trade at 121.70 at the close. Meanwhile, Verizon Communications Inc fell 0.24 percent to end at 50.82 and Procter & Gamble Company was down 0.38 percent or 0.54 points to 141.95 in late trade.

In Commodities Markets oil prices fell on Friday, after U.S. consumer prices rose more than expected and China imposed new COVID-19 lockdown measures. Brent crude fell $1.06 to settle at $122.01 a barrel. U.S. West Texas Intermediate crude fell 84 cents to settle at $120.67 a barrel. Spot gold was down 0.1 percent at $1,846.22 per ounce, while U.S. gold futures eased 0.2 percent to $1,849.10. Spot silver fell 0.1 percent to $21.65 per ounce, and platinum fell 0.5 percent to $966.13, while palladium rose 0.2 percent to $1,928.17. All are on course for weekly declines.

In European Equity Markets stocks fell on Friday after U.S. inflation came in hotter than expected, raising the prospect of a recession as central banks try to put a lid on prices. Losses on the pan-European STOXX 600 index were broad-based, led by a 4.8 percent slide in banks. The index extended declines to a fourth straight session, leaving it near the level last seen on May 12 and putting it on course for weekly losses of more than 3 percent. Italy’s MIB index sank 5.2 percent to three-month lows. Spain’s IBEX gave up 3.7 percent, while other major bourses in the region lost more than 2 percent each.

In Bond Markets U.S. Treasury prices fell and intermediate-dated yields reached their highest levels in over a decade on Friday after data showed that U.S. consumer prices rose in May. Two-year yields, which are highly sensitive to interest rate hikes, spiked as far as 2.970 percent, the highest since Nov. 2018. Benchmark 10-year yields reached 3.120 percent, the highest since May 9. Three-year yields jumped to their highest levels since Dec. 2007 and five-year yields were the highest since Sept. 2008 as traders priced in more aggressive rate hikes by the Federal Reserve.