European and Asian stock markets extended gains Tuesday, while the dollar hit a one-year high above 110 yen fueled by growing optimism about the global economic recovery.

But that optimism hobbled US stocks, as it has occasionally in recent weeks, as concerns mount that the rebound will push up inflation and prompt the US Federal Reserve to raise interest rates earlier than it has indicated.

IMF Chief Kristalina Georgieva said economic growth led by the United States and China is accelerating, but warned of the increasing risks of an uneven global recovery.

"We expect inflation to remain contained, but faster US recovery could cause a rapid rise in interest rates, which could lead to a sharp tightening of financial conditions -- and significant capital outflows from emerging and developing economies," Georgieva said in an address ahead of the body's annual spring meeting cohosted with the World Bank.

Wall Street's major indices all fell, with the Dow retreating from an all-time high as the yield on US government debt rose.

Investors are unloading government debt "on persistent expectations for economic growth and inflation," said Patrick O'Hare at

"These expectations are shining through despite concerns about the coronavirus trajectory in the US and quarter-end rebalancing that should favor bonds."

Investors may also be biding their time ahead of a number of data releases this week and Wednesday's expected announcement of a multi-trillion-dollar infrastructure program by US President Joe Biden's administration.

Important data announcements are also due this week, with most analysts tipping the year-long rally across equities to continue this year despite recent stutters.

The major call is Friday's US government employment report, which will give a fresh snapshot of the world's top economy as it slowly emerges from the crisis.

Oil prices fell more than one percent on Tuesday as traffic resumed on the Suez Canal, while investors awaited Thursday's output meeting of OPEC and other major oil producers.

Observers were also tracking fallout from the sale of billions of dollars' worth of stock by troubled US fund Archegos, which left several creditor banks exposed to huge losses, including Nomura of Japan and Switzerland's Credit Suisse.

App-driven food delivery company Deliveroo is meanwhile set for London's largest stock market launch in a decade with a valuation of ?7.6 billion.

Deliveroo's initial public offering due Wednesday will be priced at ?3.90 per share, a source close to the matter said Tuesday.

That values the Amazon-backed British group at the equivalent of 8.9 billion euros or $10.5 billion.

Traders are keenly awaiting the release of US jobs data this week, which will give a fresh snapshot of the health of the world's biggest economy
Traders are keenly awaiting the release of US jobs data this week, which will give a fresh snapshot of the health of the world's biggest economy GETTY IMAGES NORTH AMERICA / JOHN MOORE

New York - Dow: DOWN 0.3 percent at 33,066.96 (close)

New York - S&P 500: DOWN 0.3 percent at 3,958.55 (close)

New York - Nasdaq: DOWN 0.1 percent at 13,045.39 (close)

London - FTSE 100: UP 0.5 percent at 6,772.12 (close)

Frankfurt - DAX 30: UP 1.3 percent at 15,008.61 (close)

Paris - CAC 40: UP 1.2 percent at 6,088.04 (close)

EURO STOXX 50: UP 1.1 percent at 3,926.20 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 29,432.70 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 28,577.50 (close)

Shanghai - Composite: UP 0.6 percent at 3,456.68 (close)

Dollar/yen: UP at 110.38 yen from 109.81 yen at 2100 GMT

Euro/dollar: DOWN at $1.1721 from $1.1765

Pound/dollar: DOWN at $1.3739 from $1.3762

Euro/pound: UP at 85.82 pence from 85.49 pence

West Texas Intermediate: DOWN 1.6 percent at $60.55 per barrel

Brent North Sea crude: DOWN 1.3 percent at $64.14 per barrel