The European Commission said it will impose extra duties of up to 38.1% on imported Chinese electric cars from July, risking retaliation from Beijing which said on Wednesday it would take measures to safeguard its interests.

U.S. consumer prices increased by less than expected on an annualized basis in May, suggesting a possible easing in price pressures that could influence how Federal Reserve policymakers see the future path of interest rates.

The U.S. government recorded a $347 billion May budget deficit, up sharply from the $240 billion deficit a year earlier due to the pre-payment of some June benefits and higher outlays for interest, Social Security and defense, the Treasury Department said on Wednesday.

U.S. consumer prices were unexpectedly unchanged in May as cheaper gasoline and other goods offset higher costs for rental housing, but inflation remains too high for the Federal Reserve to start cutting interest rates before September.

Asian equities rallied on Thursday, while bond yields slid, as investors weighed cooling U.S. inflation against a more hawkish posture by the Federal Reserve.

Oil prices fell in early trade on Thursday as investors digested news that the U.S. Federal Reserve has opted against cutting interest rates in the near future, while ample U.S. crude and fuel stocks further weighed on the market.