RBA Surprises with Interest Rate Hike Amidst Mixed Asian Markets

European stocks and US equity futures were affected by Australia's unexpected interest-rate increase, which deepened conviction that US and European central banks will push ahead with policy tightening to stamp out inflation. The Federal Reserve's two-day meeting starting Tuesday is expected to raise rates by a quarter point. In the euro zone, preliminary data showed a further acceleration in headline inflation, though the so-called core measure slowed for the first time in 10 months. The European Central Bank is seen likely to opt for a 25 basis-point increase at its meeting this week, though a bigger half-point move is not ruled out.