Markets on Edge Ahead of US Inflation Data

Nervy markets are bracing for key US inflation data ahead of the Federal Reserve's rate-setting meeting next week.

The European Central Bank has lifted its interest rates to 2.50% from 2.25%, with little surprise given recent signals, but this move barely moved region stock markets or the euro.

Oil prices remain a concern for investors after Brent crude climbed above $100 a barrel on Wednesday for the first time since July, raising fears of renewed inflation pressure just as bond yields in major economies hover near multi-decade highs.

The UK's 10-year and 20-year yields are bobbing near respective post-2007 and 1998 highs of 5.26% and 5.87%, while benchmark 10-year US Treasury yields ticked up to 4.91%.