- The bond selloff paused, and the dollar has stabilised, while European shares have fallen for the fourth day.
- The STOXX 600 index fell 0.6% on Tuesday, while US equity futures fell, putting the MSCI All Country World Index, one of the broadest measures of global equities, on track to match its longest losing streak in a decade.
- Treasury yields and European government debt yields have stabilised after reaching decade highs as investors price in a prolonged period of high interest rates.
- The threat of tighter policy is reversing some of the market's biggest gains this year, particularly in high-flying technology stocks. These growth companies are prized for their long-term prospects, but their appeal diminishes when future profits are discounted at higher rates. This is reflected in growing short positions against the Nasdaq 100 Index, which is heavy on technology.
- Japan's Finance Minister Suzuki: We're closely monitoring forex moves with a great sense of urgency.
- Japan raises view on corporate profits in September for the first time since March 2022, saying it is improving as a whole.
