- On Wednesday, equities were neutral as they headed for monthly declines due to worries that a tightening of monetary policy to combat price pressures would be detrimental to the world economy. a dollar index rose, while treasury yields increased.
- While European equities reversed earlier advances to trade at the lowest level in more than six weeks, US futures saw little change. The acceleration of inflation in the eurozone to yet another record high makes it more likely that the European Central Bank will decide to raise interest rates when it meets next week. Nagel, a member of the ECB Governing Council, called for a strong response.
- As investors worry about Russian gas supplies at the start of a three-day suspension of the crucial Nord Stream pipeline, energy equities and utilities were the leading decliners in Europe, extending their selloff to a fourth session.
- The probability of slower global growth hindered oil's potential for a third monthly decline, which would have been the longest losing streak in more than two years. After a two-day decline, European natural gas prices rose as traders weighed the threats to Russian supply against the continent's aggressive attempts to address the energy issue.
