Simon Jessop & Alun John

LONDON, (Reuters) – Global shares fell on Wednesday after a six day slump due to mixed inflation data. Meanwhile, oil prices remained near their recent highs as a result of stalled peace talks between Russia, Ukraine and Russia.

As the Russian invasion in Ukraine increased inflation pressures, Hawkish actions by the top central banks around the globe have had an impact on the equity markets. The stock market has fallen 10% since then.

On Wednesday, data showed that there was no improvement in Britain’s inflation after it reached a record 7% for the 30th consecutive year. However, this comes a day following a less-than-expected US print which gave traders hope that policy might be tightened further.

The MSCI World Index stood at 689.80 point, or 0.01%, as of 0711 GMT. This was due to falls in most European indexes. 100 was 0.1% lower.

Susannah Streeter (senior investment and market analyst) stated, “The steepest price rises in a century have unstabilized financial markets, as investors digested the unsavoury prospect for tougher hikes to interest rates.” Hargreaves Lansdown (LON)

Today in Asia, weaker-than-expected China import data weighed on the outlook. However, Beijing may have views that could further ease policy, which helped MSCI’s largest index of Asia-Pacific shares to outside Japan rise 0.6%.

Japan’s data also showed weak machine orders data. However, its stocks closed higher based on U.S. inflation figures. The open showed a 0.5% rise in U.S. stock futures.

The U.S.’ monthly consumer price index rose to its highest level in over 16 years, according to data published Tuesday. These increases were due in part because of the conflict in Ukraine.

However, the monthly underlying inflation pressures have eased since goods prices (excluding food) dropped at their highest level for two years.

Data sent U.S. yields down on Tuesday. They lost seven consecutive sessions of gains. However, they gained a bit late in the day, and Wednesday trade.

The yield on stood at 2.270% after a peak of 2.836% over the past three years, prior to inflation data.

Two year yield: 2.4241%

Clara Cheong from JPMorgan Asset Management, a strategist said that the yield moves “gave a nod” to rhetoric that U.S. inflation had likely peaked or is very nearly there.

Although it is unlikely that this will change the Fed’s trajectory from raising 50 basis points May, inflation should continue on its current path. There won’t be any pressure to increase their aggressiveness in the second half.

The German 10-year yield, which was almost 7 basis points higher than the previous day, has recovered in European markets.

After Russian President Vladimir Putin declared that the on-and-off cease-fire peace negotiations with Ukraine were “returning to a dead-end position for us”, oil prices have remained steady at recent highs. Oil futures are now flat at $104.59/barrel.

The Corn futures declined 0.8% last month, but were close to their 11-year record.

At $1,967 per ounce gold was flat

Putin’s statements were major drivers in the currency markets. However, the euro was up 0.1% against dollar and just below a five week low. Flat. ()

New Zealand’s dollar enjoyed a hectic day. It rose as high as $0.6901, and fell as low as $0.6808 as the Reserve Bank of New Zealand increased interest rates by 50 basis points. This was its largest hike in more than two decades. However, it tempered its outlook. The last time it was down 0.8% was at 0.67975.

On Wednesday, the Bank of Canada will meet and it is expected that they will announce a significant hike.