Stocks shrug off inflation angst, yen bows to dollar

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World shares and the dollar inched higher and gold was at a three-month low on Thursday as traders' attention continued to swing between the battle to lower inflation and speculation about currency market intervention in China and Japan.

had said in Portugal that U.S. interest rates are likely to rise further and did not rule out a July hike. Notably, he said he did not see inflation abating to the 2% target until 2025.In contrast to Spain's data, news that Nordrhein-Westfalen's inflation rate had ticked up again bolstered expectations for something similar from the German-wide figure later given that NW is the country's most populous state.

Two-year U.S. Treasury yields were up at 4.759% too although still below the 4.778% that had touched on Wednesday after Powell comments. European Central Bank President Christine Lagarde, on the other hand, further cemented expectations for a ninth consecutive rise in euro zone rates in July. Markets have all but priced in two more rate hikes from the ECB this year.reiterated that "there's still some distance to go" in sustainably achieving 2% inflation, the conditions the BOJ has set for considering an exit from ultra-easy stimulus.

 

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