Global Markets Fall Amid Inflation Concerns, Oil Prices Rise on Supply Easing

Global markets experienced a decline on concerns over inflation and rising government debt, leading to multi-decade high Treasury yields. The Dow and S&P 500 closed lower yesterday after a series of economic data releases. TSX futures were also in the red following Canada's main stock exchange closing lower.

The pan-European STOXX 600 fell 1.41% in morning trading, while Britain's FTSE 100 declined 1.55%, Germany's DAX dropped 1.21%, and France's CAC 40 slid 1.54%. In contrast, Japan's Nikkei rose 3.3% after Micron's earnings boosted AI optimism.

Oil prices increased as recovering Gulf crude exports and a surprise rise in U.S. inventories eased supply concerns. Brent crude futures climbed 2.6% to $100.60 a barrel, while West Texas Intermediate (WTI) rose 2.6% to $92.80 a barrel.

The Canadian dollar weakened against its U.S. counterpart, trading at $1.4246 per US$1. The yield on the U.S. 10-year note reached 5.330%, hitting its highest since 2002. Ipek Ozkardeskaya of Swissquote noted that softer-than-expected PCE numbers cooled Fed rate hike expectations.