In Asian Equity Markets stocks advanced on Wednesday, bonds were firm and the dollar nursed losses after data showed U.S. consumer prices barely rose in November, stoking hopes inflation has peaked and interest rate increases will slow and eventually stop in 2023. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent. The index is up 1.2 percent so far this month. Japan’s Nikkei was up 0.78 percent while Australian shares advanced 0.67 percent. China’s blue-chip CSI 300 Index rose 0.3 percent while the Hang Seng Index climbed 0.89 percent.

In Currency Markets the U.S. dollar struggled to gain a foothold on Wednesday after a sharp dive overnight on cooler-than-expected inflation data, which fuelled expectations that the Federal Reserve will chart a slower rate hike path later in the day. The euro was flat against the dollar at $1.0627, not far off a six-month high of $1.0673 it touched in the previous session. The Japanese yen, which jumped 1.6 percent on the dollar on Tuesday, hovered at 135.435 per dollar, while sterling was last trading at $1.2351, flat on the day. The dollar index was flat at 104.05.

In US Equity Markets stocks rose on Tuesday after an unexpectedly small consumer price increase buoyed optimism that the Fed could soon dial back its inflation-taming interest rate hikes, but concerns remained the central back could stay aggressive. The Dow rose 0.3 percent, to 34,108.64, the S&P 500 gained 0.73 percent, to 4,019.65 and the Nasdaq Composite added 1.01 percent, to 11,256.81. Energy, up 1.77 percent, was among the best performing S&P sectors on the day as the softer-than-anticipated inflation data sent the dollar lower and boosted crude oil prices.

In Commodities Markets oil settled over $80 a barrel on Tuesday and recorded its biggest daily gains in over a month, as investors bought up risk assets after U.S. data pointed to slowing inflation. Brent crude futures settled at $80.68 per barrel, up 3.5 percent. U.S. West Texas Intermediate (WTI) crude futures settled at $75.39 per barrel, up by 3 percent. Spot gold was up 2.1 percent at $1,817.64 per ounce. Spot silver rose 2.5 percent to $23.87 per ounce, platinum was up 4.1 percent at $1,042.25 and palladium gained 4.3 percent to $1,969.25.

In European Equity Markets stocks climbed on Tuesday after softer-than-expected U.S. inflation data spurred bets that the Federal Reserve would scale back the size of its interest rate hikes in the world’s largest economy. The region-wide STOXX 600 was up 1.3 percent. Banks rose 1.4 percent to near one-week highs. Leveraged European stocks such as Delivery Hero, Aroundtown, LEG Immobilien and Grifols, which analysts see as potentially facing credit stress from rising interest rates, jumped between 5 percent and 9.3 percent.

In Bond Markets U.S. Treasury yields fell after the release of November data showing U.S. consumer prices barely rose last month, an indication that the Fed’s battle against inflation has started to bear fruit and that future tightening may be less aggressive. Benchmark U.S. Treasury 10-year note yields fell by about 15 basis points just after the data and then climbed to 3.506 percent, still over 10 bps lower day on day. Two-year-yields – which tend to more closely reflect monetary policy expectations – fell 17 bps on Tuesday to 4.23 percent.