US equities tumbled for the second consecutive day, as bond yields spike higher, along with oil prices. Oil surged past US$95/barrel overnight, markedly impacting inflation and surging bond yields, in both Europe and the USA. The energy crisis is heavily influencing surging inflation, which is driving higher bond yields. This adds greater pressure to already severely challenged fiscal and monetary situations in many economies The US Dollar was steady, allowing the EUR to trade 1.1630, while the GBP hit 1.3550.Commodity currencies remain vulnerable, with the NZD slipping back below 0.5850, while the AUD drifted to 0.7220. The NZD/AUD cross rate has been slammed, with the relative weakness of the NZD, which has crashed back below 0.8100. Chinese inflation data revealed upward pressure in both the CPI and PPI. Chinese inflation has remained relatively stable, over the energy crisis, so any consistent rise will spell problems.
