In European Equity Markets indices were near session highs at Wednesday’s close, as investors shrugged off concerns surrounding U.S. inflation data and cheered on positive corporate news. The pan-European Stoxx 600 finished up 1.07 percent, recovering from a sharp dip in afternoon trade. Sectors moved back into the black in late afternoon trade, with almost all industries closing above 1 percent. On the bourses front, the U.K.’s FTSE 100 closed up 0.64 percent, while France’s CAC 40 and Germany’s DAX jumped 1.10 percent and 1.17 percent respectively. Media outpaced most sectors Wednesday, closing up 2 percent overall, with Rupert Murdoch’s Sky among the top performers.

In Currency Markets the U.S. dollar surrendered gains against a basket of major world currencies after the Labor Department said its Consumer Price Index increased 0.5 percent. South Africa’s rand jumped more than 1 percent to its firmest since June 2015 and bonds hit a one-week best on Wednesday after the ruling African National Congress (ANC) said it would proceed with a vote to remove President Jacob Zuma from office. The Romanian leu hovered close to an all-time low on Wednesday as data showed a weakening in the country’s recent stellar growth rate and a higher than anticipated rise in inflation. The leu was steady at 4.6581 to the euro, about 0.4 percent off an all-time low it touched earlier this year.

In Commodities Markets U.S. crude stocks rose less then expected last week, while gasoline stocks rose by more than analysts had forecast as refineries cut output, data from the Energy Information Administration showed on Wednesday. Crude inventories rose by 1.8 million barrels in the week to Feb. 9, short of analysts’ expectations for an increase of 2.8 million barrels. U.S. crude futures rose on the news, with West Texas Intermediate up 42 cents to $59.61 a barrel. Brent gained 44 cents to $63.16 a barrel. Gold jumped over 1 percent on Wednesday, rebounding from losses made in the wake of stronger than expected U.S. inflation data, as the dollar surrendered gains and stock markets swung higher.

In US Equity Markets stocks reversed course to trade marginally higher on Wednesday as investors digested stronger-than-expected inflation data and a surprise drop in January retail sales, which shifted the focus from rising inflation to the prospect of stagflation. The S&P 500 gained 0.35 percent to 2,672.2 and the Nasdaq Composite was up 0.82 percent at 7,071.13. Seven of the 11 major S&P 500 sectors were higher. The losers included the defensive sectors – consumer staples, utilities and real estate. Among stocks, Chipotle jumped about 14.3 percent after it hired Brian Niccol from Taco Bell as its next chief executive, which analysts said sparked hopes of a quicker turnaround.

In Bond Markets German government bond yields hit their highest in more than two years and European stocks fell briefly after release of the U.S. inflation data. The yield on Germany’s 10-year government bond, the benchmark for the region, reversed earlier declines and rose around 3 basis points to 0.774 percent – its highest level since September 2015. Benchmark U.S. 10-year notes last fell 17/32 in price to yield 2.9003 percent. Egypt has raised $4 billion in a dollar-denominated Eurobond sale that closed late on Tuesday, the finance ministry said, part of a drive to plug its budget deficit and boost dollar holdings as it pursues an IMF-backed reform programme. The issuance attracted $12 billion in bids.