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Bonds Slide With Stocks as Inflation, Poor Earnings Fuel Anxiety

  • Oil drops from 15-month high amid doubt over Russia’s stance
  • Asian index futures signal losses as Alcoa results disappoint
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Could Trump Impact Where Fed Rates Head Next?

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Fresh concerns over faster inflation, U.S. interest-rate hikes, lackluster corporate earnings and the stability of the pound combined to rock markets on Tuesday.

Treasuries sank as investors demanded the highest yields since June to compensate for signs that consumer prices may be on the rise. U.S. stocks fell the most in a month after disappointing earnings from Alcoa Inc. and emerging-market shares also slumped. Sterling’s losses accelerated as strategists revised down their longer-term forecasts for the currency amid anxiety over a potential hard Brexit. One of the few winners was the dollar, which benefited as bets on a Federal Reserve rate hike this year mounted.