US and European stocks rebounded on Wednesday and crude prices surged past $110 a barrel as fighting raged in Ukraine for a seventh day, posing a challenge for central banks hoping to curb rising inflation.
Gold prices slipped on improving sentiment and US Treasury yields rose from eight-week lows as investors weighed how aggressively the Federal Reserve might raise interest rates in coming months with the outlook on growth a major concern.
The Fed will move forward with plans to raise rates this month to try to tame high inflation, but the war in Ukraine has made the outlook “highly uncertain” for US policymakers as they plan ahead, Fed Chair Jerome Powell said.
