- Stocks in Europe and US share futures both rallied on Friday after a sell-off sparked by fears of an economic slowdown, as major central banks tightened liquidity. The dollar recovered after two days of losses, while Treasury yields rose a smidgeon.
- After touching its lowest level in over a year, the Stoxx Europe 600 index gained approximately 1.2 percent. The S&P 500 and NASDAQ 100 contracts both rose more than 0.9 percent, indicating a more stable mood than Thursday's drop in US stocks to their lowest level since late 2020. Friday also marks the start of the triple witching event, which occurs every three months. The short-covering may occur as a result of the $3.5 trillion options expiration, bringing brief relief to the stock market.
- Markets are wrapping up a week marked by interest-rate hikes, including the largest move by the Federal Reserve since 1994, a surprise hike by the Swiss National Bank, and the latest increase in UK borrowing prices. The rate hikes are sapping liquidity and causing losses across the board. Global stock markets are having one of their worst weeks since the pandemic-related turbulence of 2020. The question is how much lower assets must fall before the tightening cycle becomes completely priced in.
- EU Commission recommends Ukraine be granted candidacy status.
- ECB's Knot: If inflation worsens, several 50 bps hikes are possible.
- France's Finance Min. Le Maire: We hope to unblock tax issue today.
