By Mike Dolan

LONDON (Reuters) - What matters in U.S. and global markets today

By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets

In an already bad week for long bonds, an aggravated inflation picture around the world has added another irritant. I discuss this and all the market news below.

Be sure to check out my column today, where I explore why key foreign creditors might be reassessing their holdings of U.S. debt and what this could mean for funding America's rising deficit.

Today's Market Minute

* President Donald Trump's tax cut and spending bill faces a critical stress test on Wednesday as Republicans try to overcome internal divisions about cuts to the Medicaid health program and tax breaks in high-cost coastal states.

* Companies importing goods into the United States from China are rushing to convert warehouses into facilities that are exempt from President Donald Trump's tariffs until they are ready to sell the merchandise.

* Oil prices gained more than 1% on Wednesday after reports of Israel preparing a strike on Iranian nuclear facilities raised fears that a conflict could upset supply availability in the key Middle East producing region.

* Britain suffered a bigger-than-expected inflation surge in April, including in areas watched closely by the Bank of England which investors now believe will have to slow its already gradual pace of interest rate cuts.

* Morgan Stanley upgraded its stance on U.S. equities to "overweight", citing a slowing but still expanding global economy despite policy uncertainty.

* Japanese exports rose 2% in April from a year earlier but shipments to the U.S. fell 1.8%, data from the Ministry of Finance showed on Wednesday.

* Global electricity generation from solar farms is set to exceed output from nuclear reactors for the first time this summer, marking an important milestone in the continuing growth of solar power within global energy systems.

Bad week for bonds

Britain and Canada reported above-forecast core inflation jumps for April over the past 24 hours - cutting across interest rate easing expectations in both countries and sending long-term government borrowing costs higher for both.

On top of that, the crude oil prices jumped more than 1% on Wednesday and briefly clocked their highest in a month after CNN reported Israel was preparing to strike Iran's nuclear facilities.

The darker global inflation picture comes as U.S. Federal Reserve officials remain wary of tariff-related price hikes in America.

Atlanta Fed chief Raphael Bostic said U.S. businesses may have run out of strategies to delay changing prices or employment in response to higher import taxes and the economy could soon face a wave of price increases.