- While investors ignored worries about the worsening global picture, US futures increased and European equities held steady, while UK bonds fell and the pound increased due to doubt over UK policy.
- The Bank of England announced its intention to stop buying emergency bonds on Friday, and a report revealing an unexpected contraction in the UK economy in August caused the yield on 30-year gilts to rise above 5% for the first time since late September. Following a story from Politico suggesting that the government may make additional economic U-turns, the sterling increased by more than 1%.
- Treasury yields and the value of the dollar remained relatively stable as investors awaited a key US inflation indicator that is due on Thursday and is expected to rise to a four-decade high, highlighting the widespread and intense price pressures that are pushing the Federal Reserve toward yet another significant interest-rate hike next month. Corporate earnings are a source of information for US investors regarding Fed policy.
