- European stocks rose alongside US equity futures on Tuesday, as risk appetite returned to markets roiled in recent weeks by concerns about global economic growth, rising prices, and policy tightening. Treasury yields rose, while the dollar fell.
- Following a rally in Chinese tech shares in hopes that Beijing will ease up on a yearlong clampdown, technology stocks led a broad-based advance in the Stoxx Europe 600. Equities were also boosted by data showing that the eurozone economy expanded faster than expected at the start of the year, as the region moved past a wave of COVID-19 infections and defied headwinds from the early days of the Ukrainian war.
- A challenging global economic outlook, coupled with rising food and fuel prices and tightening monetary policies, continues to shape sentiment, though one bond-market measure, the five-year breakeven rate, suggests inflation may have peaked. Oil has risen to around $114 per barrel, and an index of agricultural prices has reached a new high.
- ECB's Knot: A 50 bps rate hike should not be excluded if data in the next few months suggests that inflation is broadening and accumulating.
- ECB's Knot: A 25 bps rate hike in July is realistic.
- Russian Foreign Minister Lavrov: There is no big difference if Finland & Sweden join NATO as they had long participated in NATO's military drills.
- EU's Foreign Min. Borrell: All EU member states support Sweden, Finland joining NATO.
