Focus on outlook for rate hikes as US inflation at 7% is highest for 39 years

Europe will get stung this year with the biggest energy bill in a decade

The US posted its largest jump in consumer prices in 39 years of 7%.

All eyes are now falling on central banks around the world as the US posted its largest jump in consumer prices in 39 years of 7%, should it lead to more pressure for interest rate hikes.

However, government bond yields and stock markets on both sides of the Atlantic were little changed in part because US government yields have already surged since the start of the year. Traders have braced for the US Federal Reserve to begin hiking rates and wrapping up the bond purchases that have flooded markets with cash for nearly two years.