- Stock-index futures in the United States rose as a strong start to the earnings season allaying fears of a recession in the world's largest economy. The treasury selloff has resumed, with the debate raging over whether inflation has peaked.
- June contracts on the Nasdaq 100 and S&P 500 indexes rose at least 0.8% each after preliminary data showed that four out of five companies exceeded forecasts. Tesla rose 7.5% in premarket New York trading after reporting record profits that exceeded expectations. The yield on the 10-year Treasury note increased by 4 basis points. Following hawkish comments from European Central Bank officials, the euro and German bund yields rose.
- Bond bears have returned following Wednesday's treasury rally, which was fueled by some investors such as Bank of America and Nomura Asset Management, who said the panic over inflation and rate-hike bets had gone too far. However, an anecdotal survey conducted by the Federal Reserve revealed that inflationary pressures remained high. Meanwhile, with their focus on earnings, equities have remained resistant to higher yields.
- ECB's de Guindos: Euro-area inflation is close to its peak, but will slow in H2.
- ECB's de Guindos: An ECB rate hike is possible in July, but will depend on data.
- ECB's Wunsch: I am willing to consider raising the deposit rate in July.
- IMF Chief: A more extended slowdown in China will have global ramifications.
