Fed Meeting and Oil Surge Weigh on Stocks

Asian stocks struggle as surging oil prices drive inflation and set the stage for the Federal Reserve to project higher interest rates. Brent crude futures are up 30% in three months, leading to a spike in Canadian inflation and triggering selling in the Treasury market. Benchmark 10-year Treasury yields hit their highest level since 2007. Asian shares and Wall Street slip, while traders closely watch the Fed's economic projections and Chair Jerome Powell's news conference. Central bank meetings and data releases are expected throughout the week. Foreign exchange markets remain cautious ahead of the Fed meeting, with the yen facing pressure. Commodity-exporters' currencies remain firm, and China leaves benchmark lending rates unchanged. Sterling steadies ahead of British inflation data. Rising yields keep a lid on gold prices, while wheat prices stabilize due to expectations of dry weather affecting output in Australia and Argentina.