- Amid stronger and louder warnings that rate hikes by the Federal Reserve could trigger an economic downturn, stocks in Europe plummeted along with US futures and commodities.
- The main US stock barometer, the S&P 500, reversed yesterday's rise as the Stoxx Europe 600 index fell and contracts on the Nasdaq 100 fell along with those on the S&P 500. The dollar, treasuries, and the yen all gained as haven assets.
- As policymakers pursue a path of forceful monetary tightening to curb inflation, the hope that they can accomplish a soft landing has vanished. When he addresses legislators on Wednesday, FED chair Jerome Powell is anticipated to reaffirm his commitment. Oil is expected to experience a monthly loss as economic anxiety expanded to commodities.
- Deutsche Bank CEO Sewing: Higher likelihood of a recession in the 2nd half of 2023 in US and the EU.
- ECB's de Guindos: Euro-zone inflation to stay above 8% in coming months.
- Traders erase wagers on three half-point BoE hikes by November.
