In Asian Equity Markets stocks fell on Wednesday, extending Wall Street’s overnight losses amid concerns over inflation and the possibility of recession, which also boosted the safe-haven dollar. Japan’s Nikkei index fell 0.98 percent, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.37 percent, dragged lower by Australian shares, off 0.81 percent, and Korea’s KOSPI, down 1.54 percent. Chinese blue chips, which hit a four month high the day before, lost 1.16 percent while the Hong Kong benchmark fell 1.83 percent.

In Currency Markets the U.S. dollar edged higher in early European trade Wednesday, as traders sought refuge in this safe haven given the ongoing concerns of a global economic slowdown. The Dollar Index traded 0.1 percent higher at 104.410, following a rally of around 0.5 percent overnight. The euro fell 0.3 percent to $1.0490, falling to levels not seen for almost two weeks. Against the Japanese yen, the dollar fell 0.1 percent to 136.04, while the risk sensitive Aussie lost 0.4 percent to $0.6882. Sterling edged higher to $1.2187.

In US Equity Markets stocks closed sharply lower in a broad sell-off on Tuesday as dire consumer confidence data dampened investor optimism and fueled worries over recession and the looming earnings season. The Dow fell 1.56 percent, to 30,946.99, the S&P 500 lost 2.01 percent, to 3,821.55 and the Nasdaq Composite lost 2.98 percent, to 11,181.54. Nike Inc slid 7.0 percent following its lower than expected revenue forecast. Shares of Occidental Petroleum Corp advanced 4.8 percent after Warren Buffett’s Berkshire Hathaway Inc raised its stake in the company.

In Commodities Markets oil prices settled higher for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil. Brent crude futures climbed 2.5 percent, to settle at $117.58 a barrel. U.S. WTI crude settled up 2 percent, to $111.76 a barrel. Spot gold edged 0.1 percent lower to $1,820.31 per ounce. Spot silver fell 1.5 percent to $20.82 per ounce. Platinum was steady at $907.99 while palladium rose 0.3 percent to $1,875.71.

In European Equity Markets stocks rose on Tuesday as risk appetite improved after China eased its COVID-19 quarantine mandate, while rising oil prices provided an additional boost to energy stocks. The continent-wide STOXX 600 index was up 0.3 percent, rising for a third straight session. Europe’s oil & gas sector gained 2 percent as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly. London’s FTSE 100 index, which has heavyweight oil producers, rose 0.9 percent to lead gains among regional peers.

In Bond Markets U.S. Treasury yields were mostly flat on Tuesday after a report showed consumer confidence fell in June on concerns that high inflation will likely weaken economic growth later this year. The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.763 percent. The 10-year TIPS breakeven rate was last at 2.487 percent, indicating the market sees inflation averaging about 2.6 percent a year for the next decade. The U.S. dollar five-year forward inflation-linked swap was last at 2.497 percent.