In Asian Equity Markets stocks were mixed on Thursday, while the dollar fell as global investors assessed that strong U.S. inflation data was not worrying enough to change the Federal Reserve’s already hawkish rates outlook. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1 percent higher, after recording its biggest daily gain in a month on Wednesday. Japan’s Nikkei lost 0.87 percent after rising nearly 2 percent a day earlier. Australian shares climbed 0.42 percent while Chinese blue-chips fell 0.28 percent.

In Currency Markets the dollar was nursing losses and below key support levels on Thursday after U.S. inflation proved no hotter than expected in December and prompted investors to cut crowded long positions. After a couple of months in a tight range, the dollar fell 0.6 percent on the euro on Wednesday to $1.1453, its lowest since mid-November. It also fell 0.6 percent on the yen, falling through support around 115 to hit 114.38 yen per dollar, a more than two-week low. It last bought 114.55 yen. The U.S. dollar index is hovering near a two-month low at 94.962.

In US Equity Markets stocks rose on Wednesday after data showed that while U.S. inflation was at its highest in decades, it largely met economists’ expectations, cooling some fears that the Fed would have to pull back support even more forcibly than already expected. The Dow rose 0.11 percent, to 36,290.32, the S&P 500 gained 0.28 percent, to 4,726.35 and the Nasdaq Composite added 0.23 percent, to 15,188.39. The healthcare index was weighed down by shares of drugmaker Eli Lilly, which closed down 2.4 percent and was the biggest single weight on the S&P, and Biogen, which lost 6.7 percent.

In Commodities Markets oil prices hit two-month highs on Wednesday on tight supply as crude inventories in the United States, the world’s top consumer, fell to their lowest since 2018, and as the dollar weakened and worries eased about the Omicron coronavirus variant. Brent crude futures settled up 1.1 percent, at $84.67 a barrel. U.S. WTI crude futures were up 1.8 percent, at $82.64. Spot gold was last up 0.2 percent at $1,825.83 per ounce. Spot silver was up 1.7 percent at $23.16 an ounce, platinum gained 0.9 percent to $979.39, while palladium fell 0.5 percent to $1,911.09.

In European Equity Markets stocks ended higher on Wednesday, supported by commodity-linked stocks which rose on hopes of more stimulus in major importer China, while easing bond yields took pressure off the technology sector. The pan-European STOXX 600 index closed up 0.7 percent, with the basic resources and energy sectors up 3.2 percent and 2.3 percent respectively. Among individual stocks, German software company TeamViewer rose 14.9 percent after announcing upbeat preliminary fourth-quarter and full-year results.

In Bond Markets longer-dated U.S. Treasury yields fell on Wednesday after a reading on inflation was largely in line with expectations and did not alter views on the path of Federal Reserve policy. Benchmark 10-year yields fell as more aggressive rate hikes are also seen as likely to dent growth and inflation longer-term. The yield had reached 1.808 percent on Monday, its highest since Jan. 21, 2020. The yield on the 30-year Treasury bond was down 0.1 basis points to 2.071 percent. Shorter-term yields were higher, with the two-year U.S. Treasury yield up 1.2 basis points at 0.911 percent.