Global share prices eased and U.S. Treasury yields hit multi-year highs on Wednesday as investors bet that the U.S. Federal Reserve will couple shrinking of its balance sheet next month with a big interest rate hike to quell decades-high inflation.
Investors also waited for details of the latest package of coordinated sanctions on Russia from the United States and its allies over civilian killings in Ukraine.
The dollar hit its highest in almost two years, while expectations of new sanctions raised oil supply concerns to send crude prices higher. read more
The STOXX (.STOXX) stock index of 600 European companies fell 0.8%, while the MSCI All-Country stock index (.MIWD00000PUS) shed 0.4%.
Fed Governor Lael Brainard said overnight that she expected a combination of interest rate rises and a rapid balance sheet runoff to take U.S. monetary policy to a "more neutral position" later this year.
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