- Stocks were boosted by a rally in Hong Kong, which was fueled by China's move to ease a dispute with the US over audits. Treasuries fell on the prospect of a sharp increase in federal reserve interest rates to combat inflation.
- Chinese technology shares in Hong Kong rose more than 2% after regulators removed a major impediment to full US access to audits. Unless and until the dispute is resolved, Chinese companies' Wall Street listings are jeopardised.
- The S&P 500 and Nasdaq 100 futures fell as traders weighed the prospect of tougher sanctions against Russia over the Ukraine conflict. Following reports that Russian troops executed unarmed civilians in Ukrainian towns, some European Union governments are calling for new penalties.
- Oil fell further, extending a drop sparked by the US announcement of an unprecedented release of strategic reserves to combat rising energy costs. A worsening covid outbreak, as well as Chinese lockdowns, also pose a threat to demand.
- The treasury yield curve is flashing more warning signs that economic growth will slow as the Fed raises rates to tame inflation, which is being fueled in part by commodities. The US two-year yield has surpassed the 30-year yield for the first time since 2007, joining inversions on other parts of the curve.
