In Asian Equity Markets stocks struggled on Thursday and the safe haven dollar was strong as white hot U.S. inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.1 percent, hovering just above the two-year low hit on Tuesday, while U.S. Nasdaq futures shed 0.3 percent. Japan’s Nikkei bucked the trend by rising 0.6 percent, helped by the yen’s weakness against the dollar boosting exporters.

In Currency Markets the dollar resumed its relentless rise on Thursday, driven by both expectations for faster Fed policy tightening and safe-haven flows amid growing fears of a recession. The greenback charted new 24-year highs above 128 yen and edged back toward parity with the euro. The euro weakened 0.39 percent to $1.0020. It touched $0.9998 on Wednesday for the first time since December 2002. Sterling fell 0.4 percent to $1.1847. The greenback gained 0.11 percent on Canada’s loonie to C$1.2293 on Thursday, but after losing 0.32 percent overnight.

In US Equity Markets stocks closed modestly lower on Wednesday after investors digested hotter-than-expected U.S. inflation data, which fueled fears that the Federal Reserve could raise key interest rates by as much as 100 basis points later this month. The Dow fell 0.67 percent, to 30,772.79, the S&P 500 lost 0.45 percent, at 3,801.78 and the Nasdaq Composite 0.15 percent, to 11,247.58. Shares of Delta Air Lines slid 4.5 percent after the carrier’s second-quarter earnings missed expectations, although Chief Executive Ed Bastian said strong travel demand will result in “meaningful” full-year profit.

In Commodities Markets oil prices rose modestly on Wednesday even after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase. Brent crude settled up 8 cents at $99.57 a barrel, while U.S. West Texas Intermediate crude gained 46 cents to $96.30 a barrel. Spot gold rose 0.8 percent to $1,739.49 per ounce. U.S. gold futures settled up 0.6 percent at $1,735.5. Spot silver rose 1.8 percent to $19.23 per ounce, platinum was up 1.1 percent at $855.31, while palladium fell 2.2 percent to $1,982.84.

In European Equity Markets stocks fell on Wednesday as higher than expected U.S. inflation data raised bets about more aggressive Federal Reserve policy action, and also put pressure on the European Central Bank after the euro fell to parity with the dollar. The pan-European STOXX 600 index ended 1 percent lower. Automobiles, construction and materials were the biggest European sectoral losers, down 2.3 percent and 1.8 percent, respectively. Orion jumped 9.2 percent as the Finnish drug maker upgraded its full year outlook after signing a collaboration deal with Merck.

In Bond Markets the benchmark U.S. Treasury yield curve on Wednesday posted its largest inversion since November 2000, as investors priced in a full percentage point of Federal Reserve tightening this month that could push the world’s largest economy into recession. In midafternoon trading, U.S. benchmark 10-year yields was last down 5.2 bps at 2.904 percent. U.S. 30-year yields fell 6.3 bps to 3.074 percent, following a relatively strong auction of the long bond.