Bloomberg.com — An anticipated pickup in U.K. inflation failed to materialize last month as food, clothing and transport prices declined.

Annual consumer-price growth stayed at 2.4 percent in October, the Office for National Statistics said on Wednesday. The figure is below the 2.5 percent predicted by both the Bank of England and economists in a Bloomberg survey.

Food and non-alcoholic drink prices fell 0.2 percent from September, clothing and footwear declined 0.5 percent and the cost of transport equipment and services was down 0.4 percent. These effects were offset by the highest auto-fuel costs in almost four years and a 2.2 percent jump in energy bills after British Gas hiked tariffs for more than 3 million customers.

The pound was little changed after the figures at $1.2963, down 0.1 percent on the day.

BOE policy makers say gradual interest-rate increases will be needed to keep inflation falling toward its 2 percent target, assuming Britain avoids a disorderly Brexit.

Expectations that officials will tighten policy after Britain leaves the European Union next year were reinforced by figures Tuesday showing wages growing at their fastest pace in almost a decade, a sign that home-grown prices pressure are building. […]

Bloomberg.com — Stocks in Asia seesawed Wednesday after a mixed bag of data on China’s economy that followed a topsy-turvy session for U.S. shares. Oil extended its rout, while the pound stabilized after its recent bounce.

Japanese stocks came off their highs of the day, while shares declined in Hong Kong, China and South Korea. Australian equities underperformed, as energy producers weighed. European futures pointed to a weaker open. Earlier, U.S. equities ended lower as optimism over trade talks with China was offset by the plunging crude price, which dropped more than 7 percent Tuesday. The pound maintained gains amid optimism the U.K. and the European Union have agreed upon a draft Brexit divorce deal. Treasury yields were flat and the dollar remained near an 18-month high.

Risk appetite had built Tuesday morning in the U.S. after White House economic adviser Larry Kudlow told CNBC that the U.S. and China are talking on “all levels” of government. That followed an overnight report that China’s Vice Premier Liu He will pave the way for a meeting between the leaders of the two biggest economies later this month. Meanwhile, the Trump administration was said to be holding off for now on imposing new tariffs on automobile imports.

Focus now turns to Federal Reserve Chair Jerome Powell who speaks Wednesday, with some observers expecting him to calm worries about the central bank pushing its interest rate-hike cycle too far. That comes after the latest read on China’s economy, where retail sales missed estimates, though industrial production held up.

Italian assets are back in focus after its government stuck to forecasts for a 2.4 percent budget deficit and 1.5 percent growth target for next year. The move pushes aside attempts by Finance Minister Giovanni Tria to placate the European Commission, which had demanded changes to ease concerns about excessive spending and overly optimistic growth estimates.

Elsewhere, India’s rupee rallied to an almost two-month high and sovereign bonds advanced as the slump in oil prices deepened, easing investor concerns over the oil-importing nation’s current-account deficit. The pound extended gains following a report that key ministers will back U.K. Prime Minister Theresa May’s draft Brexit agreement after months of negotiations.

Bloomberg.com — U.K. wage growth accelerated to a near 10-year high, backing the Bank of England’s view that there is now no spare capacity in the labor market.

Average earnings excluding bonuses rose 3.2 percent in the three months through September from a year earlier, the most since December 2008, the Office for National Statistics said Tuesday. Unemployment unexpectedly rose from a 43-year low to 4.1 percent. […]

Bloomberg.com — Asian stocks traded lower Tuesday following a tech-led slump on Wall Street overnight though the worst of the losses were pared on hopes for progress in the U.S.-China trade dispute. Treasury yields dropped and the dollar slipped from an 18-month high.

Key indexes slid from Tokyo and Seoul to Sydney, with Apple Inc. suppliers under pressure after the iPhone maker fell 5 percent on signs of a deteriorating sales outlook. Stocks came off their lows on a report that China’s Vice Premier Liu He will visit the U.S. to pave the way for a meeting between the leaders of the two biggest economies later this month, which also supported some currencies.

Hopes of a resumption in trade talks helped Chinese shares swing from declines of more than one percent to gains of a similar magnitude with small-caps boosted by government pledges to support the private sector. Hong Kong stocks erased a slide. S&P 500 Index futures pushed higher and U.K. futures tipped modest gains at the open. Earlier, the Nasdaq 100 Index dropped for a third day and the Russell 2000 small-cap benchmark erased its gains for the year. Oil fell for a record 12th straight day Tuesday.

The latest warning on consumer appetite for electronics came from Lumentum Holdings Inc., an Apple supplier that said a top customer asked to “meaningfully reduce shipments” for previously placed orders. Deteriorating sentiment towards tech has hit the sector that had propelled American stock gains until October. Trade-war worries are also rising, with the White House circulating a draft report on auto tariffs.

In the background is a Federal Reserve that continues on its path of policy normalization. San Francisco Fed President Mary Daly indicated Monday that she isn’t worried about recent declines in stocks. A “broad consensus” had agreed that “valuations were higher than could be supported,” she said. “So then a correction is something that I would view as a positive.” The Fed is forecast to hike interest rates again next month.

“We always talk about that proverbial wall of worry and that wall right now is pretty high,” David Kudla, chief executive officer of Mainstay Capital Management, said on Bloomberg TV. “We have the issues in China with the growth concerns there, we have the issues in Europe with the battle between the Italy and the EU, the U.K. getting ready for Brexit. There is some guidance lower on earnings, and a Federal Reserve that is going to raise rates.”

The Australian and New Zealand dollars climbed on the reports that the U.S. and China are inching closer toward resolving the trade war. China and the U.S. will find a solution to their differences over trade that meets both countries’ common interests, Chinese Premier Li Keqiang said in Singapore Tuesday. The yen, a proxy in times of uncertainty, swung to a loss.

Elsewhere, Britain’s pound pared losses from the past three days as pressure builds on U.K. Prime Minister Theresa May to ditch her Brexit plan. The euro recovered from its weakest against the dollar since June 2017 ahead of more potential stress around Italy’s budget.