Battered bonds and emerging market currencies enjoyed some respite on Thursday as the dollar took a breather from a post-U.S. election charge that has taken it to a 13-1/2 year high.
The financial market looked set for a quiet start and Europe's main stock markets were shuffling sideways as the dip in global bond yields cooled bank stocks, which have been rising on hopes higher yields will led to better lending profits.
The dollar dropped a modest 0.1 % against other top world currencies after data showing the biggest increase in U.S. consumer prices in six months.
But the fact it hadn't quite clawed back yet marked a change of direction after eight days of back-to-back gains that have seen it jump almost 4 %.
"The momentum of the Trump rally (in bond yields and the dollar) has faded a bit so we are all trying to recover," said Rabobank strategist Philip Marey.
He said investors were mainly trying to get a handle on what U.S. President-elect Donald Trump is likely to do when he takes office in January, as well as position for what now looks almost certain to be a U.S. interest rate rise next month.
Trump was set for meeting with Japanese Prime Minister Shinzo Abe in New York while in her first comments since last week's election, Federal Reserve chief Janet Yellen said the case for a rate hike has strengthened.
"Such an increase could well become appropriate relatively soon," Yellen said in remarks due to be given to Washington politicians later.
Japanese yield cap