- As high inflation, a hawkish Federal Reserve, and China's Covid difficulties keep investors on edge, US market futures fell Wednesday as sovereign bonds prolonged a selloff.
- Following an after-hours Netflix collapse on weak subscriber statistics, Nasdaq 100 contracts fell 1%, dampening confidence from a S&P 500 surge. Asia's stock markets were uneven, with Japan rising, China falling, and Hong Kong fluctuating.
- Chinese banks kept their lending rates the same, surprising investors hoping for a cut to help a faltering economy under Covid lockdowns. The offshore yuan was trading at its lowest level in six months against the dollar.
- Treasury rates have risen as prospects of a swift Federal Reserve policy tightening have increased. Interest rates will most likely exceed the neutral level, according to Fed's Evans. For the first time since 2020, 10-year real rates in the US have turned positive, indicating tighter financial conditions that could harm equities.
