- US equity futures slipped Tuesday as a risk-off mood swept through markets amid fears central bank tightening will sap growth. the dollar advanced and treasury yields stabilized.
- Contracts on the S&P 500 and the Nasdaq 100 fell at least 1% as Treasury yields remained near a month high. Contracts for the S&P 500 and Dow Jones Industrial Average were also lower. As telecom and technology stocks weighed, the Stoxx Europe 600 index fell. Target Corp. shares fell in the premarket after the retailer cut its profit forecast for the second time in three weeks due to an inventory surplus.
- Investors are hesitant to take on the risk because they are concerned that anti-inflationary policies will go too far and kill economic recoveries rather than alleviating price pressures in a so-called soft landing.
- ECB's Muller: There is no reason to assume energy and food costs will fall.
- Traders price in a 50% probability of a half-point ECB hike in July.
- RBA Cash Rate Actual 0.85% (Forecast 0.6%, Previous 0.35%) - AUD Strengthened.
