In Asian Equity Markets stocks fell on Wednesday as U.S. Treasury yields hit fresh two-year highs and a global technology stock sell-off unsettled investors worrying about inflation and bracing for tighter U.S. monetary policy. MSCI’s broadest index of Asia-Pacific shares outside Japan reflected the sombre tone, losing 0.7 percent in mid-afternoon trade after closing lower for four days straight. Australia shed 1.0 percent, while Japan’s Nikkei was down 2.7 percent. Elsewhere, South Korea’s Kospi lost 1.0 percent, while China’s blue-chip index was down 0.6 percent.

In Currency Markets the dollar held firm on Wednesday after the previous day’s rise in U.S. yields resulted in sharp gains against the euro and put the greenback above support levels established in recent months amid mounting expectations for U.S. interest rate increases. The euro is back on its 50-day moving average at $1.1327 after falling about 0.7 percent on Tuesday, its sharpest daily decrease in a month. The Australian dollar was at $0.7192, still struggling to break resistance just below 73 cents. The kiwi was pinned at $0.6787.

In US Equity Markets main indexes fell sharply on Tuesday as weak results from Goldman Sachs weighed on financial stocks and tech shares continued their sell-off to start the year as U.S. Treasury yields rose to milestones. The Dow fell 1.51 percent, to 35,368.47, the S&P 500 lost 1.84 percent, to 4,577.11 and the Nasdaq Composite fell 2.6 percent, to 14,506.90. Goldman Sachs shares fell 7 percent after the investment bank missed quarterly profit expectations amid weak trading activity. The financial sector, which has been one of the better-performing groups in 2022, lost 2.3 percent.

In Commodities Markets oil prices on Tuesday climbed to their highest since 2014 as investors worried about global political tensions involving major producers such as the United Arab Emirates and Russia that could exacerbate the already tight supply outlook. Brent crude futures rose 1.2 percent, to settle at $87.51 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended 1.9 percent, higher at $85.43 a barrel. Spot gold was down 0.3 percent at $1,813.08 per ounce. Spot silver was up 1.8 percent at $23.42 an ounce, platinum rose 1 percent to $981.50 and palladium rose 1.5 percent to $1,903.17.

In European Equity Markets stocks fell on Tuesday, with tech stocks losing the most as a rise in short-term U.S. Treasury yields reflected increased expectations for an interest rate hike by the Federal Reserve as soon as March. The pan-European STOXX 600 index fell 1.0 percent to 479.79 points. Tech stocks declined 2.2 percent, the most among their peers, as they resumed a losing spree that began at the start of the year. Chocolate maker Lindt & Spruengli fell 3.0 percent after it said sales of its upmarket chocolates will likely grow at a slower pace in 2022 than last year, due to supply chain bottlenecks.

In Bond Markets benchmark U.S. Treasury yields jumped to two-year highs and two-year yields breached 1 percent on Tuesday as traders prepared for the Fed to be more aggressive in tackling unabated inflation. Benchmark 10-year yields reached 1.87 percent, the highest since January 2020. Two-year yields, which track short-term interest rate expectations, rose above 1 percent for the first time since February 2020 and were last 1.043 percent. Inflation expectations edged higher on Tuesday with breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS) last at 2.83 percent.