Financial markets had an unsettled session yesterday as economic data releases in China and the US rekindled doubts about the global recovery story.
Most worrying for investors was news of a surge in Chinese inflation, which some economists warned could prompt the country's authorities to slam on the policy brakes to keep the economy from overheating.
Consumer prices rose by 2.7 per cent in the year to February, the highest rate for 16 months, compared to a year-on-year rate of 1.5 per cent in January. Data on producer prices, factory output and retail sales were also robust.
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