ECONOMY & MARKETS

Shut out of the bond market and spurned by banks, a growing number of cash-starved Chinese local government financing units are tapping a loosely regulated funding channel to directly court yield-hungry retail investors.

Despite a crushing selloff that pushed U.S. stocks into a bear market, investors see few signs suggesting equities have hit bottom, as persistent worries over surging inflation and an aggressive Federal Reserve continue to pressure asset prices.

President Joe Biden's top officials and Federal Reserve Chair Jerome Powell were quick to dismiss the first embers of inflation in the spring of 2021 in a single word: Transitory.

China's economy showed signs of recovery in May after slumping in the prior month as industrial production rose unexpectedly, but consumption was still weak and underlined the challenge for policymakers amid the persistent drag from strict COVID curbs.

Japan's government hopes the central bank will take "necessary measures appropriately" in light of the yen's recent sharp falls and rising cost of living, Chief Cabinet Secretary Hirokazu Matsuno said on Wednesday.

Asian markets were in a pensive mood on Wednesday as shell-shocked investors waited to see just how aggressive the Federal Reserve would be on rates, with many fearing drastic action would risk tipping the world into recession.

European markets rallied on Wednesday on news the European Central Bank would hold an emergency meeting on the recent bond market sell-off ahead of what is expected to be the most aggressive rise in U.S.

European markets trimmed gains after the European Central Bank unveiled fresh measures on Wednesday to temper a market rout that has fanned fears of a new debt crisis before what is expected to be one of the sharpest U.S.

Global stocks rallied and government bond yields and the dollar retreated from multi-year highs on Wednesday as investors cheered the Federal Reserve's decision to raise interest rates by three-fourths of a percentage point, the biggest increase since 1994.

The dollar held near its overnight 20-year peak on Wednesday ahead of the outcome of the Federal Reserve policy meeting at which markets are pricing in an outsized 75 basis point interest rate hike as policymakers try to rein in rampant inflation.

The euro jumped after the ECB's governing council said it would hold an emergency meeting on Wednesday to discuss the recent sell-off in government bond markets, briefly distracting traders ahead of a much-watched Fed meeting.

The dollar held near its overnight 20-year peak on Wednesday ahead of the outcome of the Federal Reserve policy meeting at which markets are pricing in an outsized 75 basis point interest rate hike as policymakers try to rein in rampant inflation.

The euro jumped after the ECB's governing council said it would hold an emergency meeting on Wednesday to discuss the recent sell-off in government bond markets, briefly distracting traders ahead of a much-watched Fed meeting.

The euro jumped after the European Central Bank's governing council said it would hold an unscheduled meeting on Wednesday to discuss the recent sell-off in government bond markets, hours ahead of a closely-watched meeting of the U.S Federal Reserve.

The dollar edged lower against a basket of currencies on Wednesday but remained near the two-decade high touched in the previous session as traders awaited an interest rate decision from the U.S.

Oil prices made gains on Wednesday, rebounding from losses earlier in the session amid concerns over fuel demand and the broader economy ahead of an expected big hike in interest rates by the U.S.

Oil prices rose on Wednesday, rebounding from losses earlier in the session amid concerns over fuel demand and the broader economy ahead of an expected big hike in interest rates by the U.S.

Oil prices were stable on Wednesday as the market juggled fears of tight supply with concerns over fuel demand and global economic growth, ahead of an expected big hike in interest rates by the U.S.

Japan's core machinery orders surged unexpectedly in April, government data showed on Wednesday, as business spending remained robust despite uncertainties such as higher energy prices and China's COVID-19 lockdowns.

Japan's core machinery orders unexpectedly rose in April, at the fastest pace in 18 months, as business spending remained defiantly robust against higher energy prices and China's COVID-19 lockdowns.

Confidence among Japanese manufacturers rose in June and was steady in the services sector as resilient demand helped firms withstand pressure from high raw material prices, a Reuters poll showed, in a sign of a gradual economic recovery.

Argentina's monthly inflation clocked in at 5.1% in May, still painfully high but below expectations and slower than the two previous months as the South American grains producer battles to bring down consumer prices.

A global deal to cut fishing subsidies could be struck at a major ministerial meeting of the World Trade Organization this week even though India in particular pushed for a major exemption, officials said on Tuesday.

As the European Central Bank rushes to exit stimulus and raise interest rates to tame inflation, bond markets are testing its ability and willingness to act against the strains that are starting to hit weaker countries in the bloc.

U.S. producer prices increased solidly in May as the cost of gasoline surged, another sign of stubbornly high inflation that could force the Federal Reserve to raise interest rates by as much as 75 basis points on Wednesday.

OPEC has kept to its forecast that world oil demand will exceed pre-pandemic levels in 2022, but said Russia's invasion of Ukraine and developments around the coronavirus pandemic pose a considerable risk.

OPEC has stuck with its forecast that world oil demand will exceed pre-pandemic levels in 2022, although the producer group said Russia's invasion of Ukraine and developments around the coronavirus pandemic pose a considerable risk.

Euro area interbank borrowing rates saw their biggest daily jumps in over 10 years on Tuesday, reflecting huge increases in market expectations for European Central Bank rate hikes.

Investors have dramatically raised their bets that the U.S.