- Mixed corporate profits, China's Covid woes, and the potential of aggressive Federal Reserve monetary tightening all pointed to a gloomy economic outlook on Wednesday, sending stocks lower.
- Japan sapped MSCI's Asia-pacific share barometer, which fell to its lowest level since mid-2020, while bourses in China and Hong Kong fluctuated. After the S&P 500 fell to a six-week low and the technology-heavy Nasdaq 100 fell to levels last seen in 2021, US equity futures stabilised.
- The dollar rose to its highest level in over two years as a result of risk aversion. Treasury yields have reduced a significant surge from Tuesday, but the benchmark 10-year yield is still lower for the week at 2.73%.
- The euro fell to its lowest level against the dollar since 2017 amid fears that Moscow may stifle gas exports to Europe, stifling the region's economic growth in the aftermath of Russia's invasion of Ukraine.
- On Wednesday, Russia will cut off supplies to Poland and Bulgaria, following through on a promise to limit supply to nations that refuse to pay in Rubles for fuel. In the midst of the growing tensions, oil rose beyond $102 per barrel, with Europe considering a ban on Russian barrels.
