- Stocks and commodities fell as China's worsening covid outbreak exacerbated fears sparked by faster Fed tightening. Bond prices increased.
- US equity futures fell, indicating that the S&P 500 will continue to fall after falling 2.8% on Friday to its lowest level since mid-March. The Stoxx 600 Europe index fell about 2%, with miners and energy companies leading the way. West Texas Intermediate futures fell nearly 5% to trade below $98 per barrel, despite a rout in other raw materials.
- Fears of a wider lockdown in Beijing are alarmed investors, who are already concerned about the risk of a global slowdown as the Fed raises interest rates to combat inflation. A broad index of Chinese stocks fell to its lowest level in nearly two years as policymakers raced to contain an outbreak that has already hampered Shanghai, despite the government's steadfast adherence to its covid-zero policy.
- The S&P 500 is about to fall sharply, according to Morgan Stanley's Wilson, as investors seek safe havens amid fears that aggressive Fed action will precipitate a recession. In a note released on Monday, Morgan Stanley strategists stated that a rapidly tightening Fed is looking right into the teeth of a slowdown, and that crowded defensive stocks no longer pay.
- Russia intends to discuss Mariupol and the Azovstal plant during talks with the UN Secretary-General in Moscow - RIA.
- German government raises 2022 CPI forecast to 6.1% in spring forecasts, up from 3.3% in January - Document.
- Money Markets scale back BoE rate hike bets, now price in around 150 BPS of tightening by year-end, from 160 BPS on Friday.
