In Asian Equity Markets stocks were a mixed bag on Thursday as markets weighed a potential Chinese economic recovery against concerns over rising inflation and interest rates in the rest of the globe. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes kept to a tight range, with gains now cooling after a two-day rally. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.4 percent. Japan’s Nikkei was largely flat. Hong Kong’s Hang Seng index sank 0.8 percent after rising over 3 percent in the prior session, while the Taiwan Weighted index was flat.

In Currency Markets the dollar caught its breath in Asia on Thursday, steadying as U.S. yields went up while investors waited on European inflation data, after nasty surprises in Germany, France and Spain have given a boost to the euro this week. The dollar lost 0.9 percent on the euro on Wednesday, its sharpest decrease in a month. It was about 0.2 percent firmer on the euro on Thursday. Elsewhere the yen was fairly steady at 136.40 to the dollar. The Aussie dollar was last 0.2 percent softer on Thursday at $0.6746. The New Zealand dollar fell 0.4 percent on Thursday to $0.6230.

In US Equity Markets the S&P 500 and Nasdaq fell for a second straight session on Wednesday as Treasury yields jumped after manufacturing data indicated inflation is likely to remain stubbornly high, while comments from Federal Reserve policymakers supported a hawkish policy stance. The Dow rose 0.02 percent, to 32,661.84, the S&P 500 lost 0.47 percent, to 3,951.39 and the Nasdaq Composite fell 0.66 percent, to 11,379.48. Caterpillar shares rose 3.81 percent after the construction equipment maker said it had reached a tentative deal with a union that represents workers at four of its facilities.

In Commodities Markets oil prices settled up slightly on Wednesday as signs of ample supply, including growing U.S. crude inventories, offset growing hopes for higher demand after a jump in manufacturing in top crude importer China. Brent crude futures settled up 1 percent, to $84.31 a barrel. U.S. West Texas Intermediate crude settled up 0.8 percent, to $77.69. Spot gold was up 0.6 percent at $1,838.20 per ounce. Spot silver gained 0.5 percent to $21.01 per ounce. Palladium jumped 1.2 percent to $1,434, while platinum rose 0.3 percent to $955.36, earlier scaling an over two-week high of $966.46.

In European Equity Markets a fall in the shares of the euro zone’s largest bank BNP Paribas weighed on Europe’s STOXX 600 on Wednesday, while China-exposed miners and luxury firms limited losses after strong data from the world’s second largest economy soothed fears of an economic slowdown. The continent-wide STOXX 600 fell 0.7 percent by the close, after rising as much as 0.4 percent in early trading. BNP Paribas slid 4.2 percent after the Belgian state participation agency SFPI said the country was preparing the sale of a third of its 7.8 percent equity stake in the bank.

In Bond Markets U.S. Treasury yields rose on Wednesday on higher interest rate fears, with benchmark 10-year government bond yields hitting 4 percent and the two-year yield at its highest since 2007. Treasury yields jumped after the Institute for Supply Management (ISM) manufacturing sector data, with the benchmark 10-year yield hitting 4 percent for the first time since November. Two-year yields went as high as 4.9 percent – their highest since 2007. Five-year Treasury yields also rose to their highest since November on Wednesday, gaining over nine basis points on the day to 4.261 percent.