A dose of caution has been injected into financial markets as investors brace for the latest reading on U.S. inflation.
With the new earnings seasons slowly getting underway this week, investors seem to be once again adopting a glass half-full outlook on the economy in spite of the bond market continuing to flash red about recession risks.
Following a weak readout for US manufacturing earlier in the week the US Services PMI index fell from 51.2 in March from 55.1 in February and well below consensus forecasts of 54.5.
WTI crude oil hit a fresh post-OPEC high above $81.80 on Tuesday, before sliding more than $1 from there to find itself weaker on the session at the time of writing on Wednesday.
Global markets are torn between different themes, with traders switching back and forth between inflation and recession risks depending on the latest round of data releases.