- Global stocks and US equity-index futures fell as persistent inflation in the world's largest economy bolstered the case for the Federal Reserve to tighten monetary policy more aggressively.
- Contracts for the S&P 500 index fell 0.5% after the equity index fell to its lowest level since March 2021 on Wednesday. The Nasdaq 100 futures fell 0.9%. From Hong Kong to Europe and emerging markets, equity benchmarks fell more than 2%. The dollar rose for the sixth day in a row, and treasuries rose on haven demand. Walt Disney Company fell in premarket trading in New York after lowering its growth forecast. A drop in cryptocurrency prices contributed to the risk-off mood.
- The higher-than-expected April inflation reading raised concerns that the Fed's rate hikes aren't bringing down prices quickly enough, and policymakers may have to resort to a three-quarter point move rather than the half-point pace that markets have become accustomed to. Concerns that such a shift would stifle economic growth, combined with Russia's conflict in Ukraine and China's struggles with COVID, are battering risk assets.
- ECB's Kažimír on Twitter: We are ready to hike in July.
- BoE's Ramsden: Inflation might not drop as fast as forecasts show.
- BoE's Ramsden sees more rate hikes ahead amid upside CPI risk.
- BoE's Ramsden: The BoE hasn't yet gone far enough on rate hikes.
- EC Pres. von der Leyen: The Indo-Pacific is a tense zone where the EU intends to play a more active role.
