Agustín Carstens, the general manager of the Bank for International Settlements, watched on like an annoyed headmaster. His pupils, seated neatly on the stage next to his ample frame, were up to explain to the class how they’d got it so wrong.   “We understand better how little we understand about inflation,” said Jay Powell, the Fed chair. […]

European equity starts flat to negative. Central banks signal prolonged high rates. Asia faces fiscal and monetary challenges. Japan’s BoJ undecided on policy change. Oil futures rise, Cable at lows.

5% for one year. No wonder stocks are under pressure when the 1yr Treasury note yields more than 5.1%, its highest in 22 years. FOMC minutes signalled more rate hikes – and remember those minutes were before the hot data that hit the bull rally in recent days.

Wall Street kicked off the month of September with a bust, after a disappointing economic report dragged down the Dow by 626 points, or 1.5%, Tuesday afternoon.

Israel targets Hamas; oil prices spike. European stocks soar; China's stimulus hinted. US 10yr Treasury yield declines further. Fed officials suggest pausing rate hikes. Strong job stats mean a November hike is less likely.