- As contracts rallied along with European equities, US equity futures signaled a turnaround following a crash that stripped nearly $2 trillion from the S&P 500 last week. Treasury funds withdrew.
- Before the new york markets reopened after the long weekend, the s&p 500 and the Nasdaq 100 each climbed 1.8% as confidence improved. The Stoxx Europe 600 index increased by 1%, led by the chemicals, consumer products, and mining sectors. The benchmark 10-year yield fell to around 3.27% as a result of the reduction in Treasuries.
- President Biden's words that a US recession isn't "inevitable" have helped confidence this week, but the outlook remains bleak for investors pondering whether the market has bottomed. History suggests bear markets, especially when accompanied by a recession, such as the financial crisis of 2008, take time to establish a floor.
- ECB's Kazimir stated a half-point September hike is highly probable. ECB's Rehn said it is very likely September rate hike is bigger than 0.25%.
- BoE's Pill said I see further tightening ahead in the coming months.
