- US index futures and European stocks rose as investors awaited a key inflation report to see if the Federal Reserve's efforts to control inflation in the world's largest economy were successful.
- Contracts on the S&P 500 and Nasdaq 100 indexes each rose at least 0.9%, while Europe's Stoxx 600 rose for the second day in a row. The dollar dropped, and treasury yields fell. Chinese stocks listed in the United States rose in premarket trading in New York after the Asian nation reported an increase in COVID cases.
- Despite the gains, sentiment remains fragile as investors seek evidence that global price pressures are peaking. Inflation in the United States may have moderated in April but remained above 8%, according to data released later Wednesday. Traders will use this information to determine whether the Fed can continue with its half-point hikes as planned or if a three-quarter-point increase is required.
- German Finance Minister Lindner adviser: Germany may already be at the start of stagflation.
- ECB's President Lagarde: Our inflation forecasts are increasingly pointing towards inflation being on target over the medium term.
- ECB's Muller: The APP should end in early July or a few weeks earlier; Rate hike must not be far behind.
- ECB's Villeroy: The ECB will start raising rates this summer.
