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.