Wall Street and European stocks steady after inflation jitters

Wall Street stocks partially recovered from steep falls in the previous session, when fears of prolonged inflation and prospective central bank rate increases delivered the worst day for US equity markets since May.

The blue-chip S&P 500 share index was up 0.5 per cent in late morning New York dealings after losing 2 per cent on Tuesday. The technology-focused Nasdaq Composite rose 0.4 per cent after dropping 2.8 per cent the day before.

The yield on the US 10-year Treasury note, which moves inversely to its price, ticked 0.02 percentage points lower on Wednesday to 1.518 per cent. This key debt yield, which influences borrowing costs worldwide and tracks expectations of interest rates and inflation, has climbed from about 1.3 per cent within the past week.

The Stoxx Europe 600 index advanced 0.7 per cent after losing 2.2 per cent on Tuesday, though analysts warned stock markets were likely to remain choppy.

“Even if you’re not that bullish…

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