- Following positive closes for both benchmarks, contracts for the S&P 500 and the Nasdaq 100 advanced. After China increased stimulus with additional measures totaling 1 trillion yuan ($146 billion), sentiment was boosted.
- The message from Fed officials that they expect additional monetary tightening in the months leading up to Jackson Hole has weakened a recovery in stocks and bonds from mid-June lows. The uncertainty in the markets is whether those assets will return to their year-low levels.
- In the second quarter, Germany's economy proved more resilient than previously anticipated, but deteriorating corporate confidence indicated a still uncertain future. According to economists at UBS, the Eurozone has already experienced a "shallow" recession brought on by rising energy prices that will endure until the end of the year.
- Crude oil maintained its price around $95 per barrel, with rising energy costs contributing to increased anxiety over whether price pressures had peaked. Natural gas prices have reached new highs, worsening the energy crisis that is threatening the euro-area economy and subsequently the prognosis for the rest of the world.
- Fed’s Bostic said more Strong Data Could Tip Fed Toward 75 Basis Point Rate Increase.
