MILAN/SINGAPORE—World shares fell on Tuesday and bond yields remained supported as a surprise 50-basis-point rate increase in Australia raised concern over policy tightening ahead of U.S. inflation data and a European Central Bank meeting this week.
The Reserve Bank of Australia (RBA) raised rates by the most in 22 years and flagged more tightening to come as it battles to restrain surging inflation, driving a brief spike in the Aussie and hitting local shares.
