Asian markets decline, European shares gain

Gulf Today Report 

Asian markets fell on Wednesday due to worries surrounding rising inflation and lack of confidence in Fed Reserve boss Jerome Powell comments.  

Hong Kong led Asia's losses, recording more than 3 per cent loss. 

Tokyo, Shanghai, Sydney, Seoul, Wellington, Taipei, Jakarta, Bangkok and Manila all saw significant losses, with technology firms taking the brunt of the selling.

European Shares

European shares gained on Wednesday despite the fall in Asian markets and Fed Chair Jerome Powell comments on inflation.  

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Europe's STOXX 600 rose in early trading, up 0.1% at 0843 GMT, Germany's DAX was up 0.4%, but London's FTSE 100 was down 0.7%.

Federal Reserve Chair Jerome Powell said the increase in yields is a statement on the market’s confidence in the pandemic recovery. 

The 10-year US Treasury yield edged back down below its recent one-year high, although it rose as European markets opened.

Mark Haefele, UBS chief investment officer for global wealth management said "Powell’s comments reinforce our view that the increase in inflation expectations is most likely transitory and that higher Treasury yields primarily reflect optimism over the economic recovery and the reflation trade."