World shares rebounded on Tuesday on the notion inflation may be peaking after Target Corp said it would offer deep discounts to clear inventory as consumers change their shopping habits, while Treasury yields fell after a surprise rate hike in Australia.
The retail sector of the pan-European STOXXI index closed down 0.94% after Target cut its quarterly profit margin forecast and said it would mark down prices.
Target’s warning was seen as having a positive impact on inflation and could help the Federal Reserve fight the sharp rise in consumer prices.
The MSCI’s benchmark for global stocks gained 0.40%, before the idea that Target aids the inflation fight took hold.
Ten-year gilt yields touched a seven-year high at 2.279% before ending almost flat on the day.
In Europe, benchmark 10-year German bund yields also dipped 1.6 basis points but held near Monday’s highs ahead of the ECB meeting.
The dollar index fell 0.146%, with the euro up 0.09% to $1.0704.
This report’s information was first seen on Reuters; to read more, click this link.