Eurozone inflation jumps higher on oil price spike

Asian markets track European losses, strong yen hits Nikkei | Charlotte Observer

Asian markets track European losses, strong yen hits Nikkei | Charlotte Observer

European stock markets and the euro extended losses Tuesday as political uncertainty in Italy stoked fresh fears about the eurozone.

Italian two-year yields, which soared to five-year highs above 2.7 percent on Tuesday in a throwback to the euro debt crisis, retreated back to Monday's levels. Gold and platinum producer Anglo American traded 2.76% higher at 1,846.60 while Rio Tinto, Glencore and Chilean miner Antofagasta were also among the top ten movers higher.

Japan's Nikkei 225 slumped 0.9 percent to 22,280.91 while South Korea's Kospi was down 0.7 percent to 2,460.75.

"The biggest contributor is fear of a euro zone crisis, and the spillover from that into demand for safe-haven currencies", said Koon Chow, an FX strategist at UBP.

Against the greenback, the Canadian dollar CAD= strengthened as much as 1.4 percent on Wednesday after the country's central bank held interest rates steady but suggested that it could raise rates soon, possibly as early as July. On a weekly basis, it is set to climb 0.5 percent, breaking six-week losing streak. Australia's S&P/ASX 200 added 0.2 percent to 6,014.80. -North Korean summit and the U.S. The single currency hit a nine-month low of 1.1367 against the franc and a 10-month low of 124.61 yen. "And I expect that will be a good, healthy discussion", the official said.

Investors were also getting more cautious about the dollar's recent move higher - it hit a 6-1/2 month high against a basket of its rivals earlier this week - on trade war fears and rising concerns the USA economic momentum may soften. Yields move inversely to price.

Analysts are awaiting US inflation data later in the week, which could provide clues to future interest rate moves before the Federal Reserve policy meets next month. Instead, he named an economist, Carlo Cottarelli, to lead the country until new elections.

Italy has been without a government since inconclusive elections on 4 March, when voters backed anti-establishment and far-right parties the 5-Star Movement and League Nord, leaving a hung parliament.

Di Maio says that Giuseppe Conte could be recalled to form a cabinet, without Savone in the Ministry of the economy, a proposal welcomed by President Mattarella.

U.S. S&P500 mini futures rose 0.5 percent, but market holidays in the world's two biggest financial centers - London and NY - could make trading slow and illiquid for the day.

US crude futures tumbled to six-week lows and looked set for a fifth straight day of declines.

But the potentially more significant news was that core inflation - which excludes food, energy, alcohol and tobacco - that also increased to an eight-month high of 1.1 percent. Brent crude, used to price worldwide oils, dropped 40 cents to $77.16 per barrel.

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