- On Thursday, US index futures gained while European markets held steady as investors examined earnings reports to gauge the strength of the economic recovery. Short-term Treasury yields increased quicker than long-term yields.
- Contracts on the S&P 500 and the NASDAQ 100 advanced, with bellwether Caterpillar jumping 2% in pre-market trade following an earnings beat.
- The STOXX Europe 600 index wavered between moderate gains and losses, with the energy sector underperforming as Royal Dutch Shell fell more than 4% after missing profit projections by analysts, while crude oil continued to fall. Better-than-expected results for firms ranging from Anheuser-Busch to Nokia mitigated the impact of rising inflation fears. The majority of European bonds rose.
- Flatter sovereign-yield curves are emphasizing growth concerns as pricing pressures exacerbated by an oil shortage and supply-chain snarls compel central banks to reduce stimulus.
- Investors will look to the European Central Bank later today for assurances that rising prices are only temporary and will not spiral out of control.
- Meanwhile, natural gas and electricity costs in Europe declined after Russia indicated it may increase gas shipments.
- France's Macron informed Australian Prime Minister Morrison, Australia has broken the two countries' trust relationship.
- China's Ministry of Commerce on the US revoking China Telecom licence: The measure stifles cooperation and the US should fix its error.
- Germany's Dihk predicts 3.6% GDP growth in 2022.
- Germany's Dihk: 58% of enterprises view increased energy and raw material prices as a commercial concern (vs 42% previously)
- Traders expect a rate rise of 20 BPS by the ECB in December 2022. - Sources
- France detains a British trawler amid a fishing rights dispute - Sky.
