In Asian Equity Markets stocks fell on Wednesday as hawkish comments from Federal Reserve officials brewed more concerns over heightened interest rates, pushing investors out of risk-driven assets and into the dollar. Japan’s Nikkei 225 index fell 2 percent, while Taiwan stocks lost 2.2 percent. South Korea’s KOSPI fell nearly 3 percent to a two-year low, while Hong Kong’s Hang Seng index lost 2.4 percent to an 11-year low. China’s blue-chip Shanghai Shenzhen CSI 300 index fell 1.3 percent on Wednesday, with sentiment towards the country worsening as the offshore yuan hit a record low.

In Currency Markets the dollar hit a fresh two-decade peak against a basket of currencies on Wednesday on the back of rising Treasury yields, while sterling languished near a record low on concerns over Britain’s radical tax cuts to spur growth. The U.S. dollar index hit a new high of 114.68 in Asia trade and was last up 0.42 percent at 114.62. Sterling was down nearly 1 percent to $1.0634. Euro lost 0.4 percent to $0.9555, not far off from its recent 20-year trough of $0.9528, with the latest flare-up in the euro zone’s gas crisis adding to the gloomy outlook for the single currency.

In US Equity Markets the S&P 500 fell to its lowest level in almost two years on Tuesday on worries about super aggressive Federal Reserve policy tightening, trading under its June trough and leaving investors appraising how much further stocks would have to fall before stabilizing. The Dow fell 0.43 percent to end at 29,134.99 points, while the S&P 500 lost 0.21 percent to 3,647.29. The Nasdaq Composite climbed 0.25 percent to 10,829.50. Seven of 11 S&P 500 sector indexes fell, with utilities and consumer staples each down about 1.7 percent and leading declines.

In Commodities Markets oil prices rose on Tuesday from nine-month lows a day earlier, supported by supply curbs in the U.S. Gulf of Mexico ahead of Hurricane Ian and an easing in the U.S. dollar from its strongest level in two decades. Brent crude settled at $86.27 a barrel, up 2.6 percent, having fallen as low as $83.65 in the previous session. U.S. WTI crude settled at $78.50, up 2.3 percent. Spot gold was 0.5 percent higher at $1,629.69 per ounce. Meanwhile, spot silver gained 0.3 percent to $18.39 per ounce. Platinum shed 0.6 percent to $846.53, while palladium advanced 1 percent to $2,066.67.

In European Equity Markets stocks fell on Tuesday, extending a sell-off driven by escalating fears of a recession amid aggressive policy tightening by central banks, with London stocks reeling from worries about a new economic plan. Germany’s DAX fell 0.7 percent to November 2020 lows, while Italy’s MIB index lost 1.2 percent giving back all of Monday’s election relief gains. The continent-wide STOXX 600 index closed down 0.1 percent after a volatile session which saw it rise as much as 1.3 percent. Gains in miners, energy and healthcare stocks were offset by sharp falls in banks and utilities.

In Bond Markets benchmark U.S. 10-year Treasury yields rose to their highest level in about 12-1/2 years on Tuesday as investors girded for higher interest rates that could possibly remain for longer than anticipated as Federal Reserve officials held firm in their hawkish stance. U.S. 10-year yield hit 3.992 percent, the highest since April 5, 2010. It was last up 8.3 basis points to 3.964 percent. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.2 basis points at 4.312 percent.