- US equity futures fell alongside European stocks as investors remained concerned about inflation and central banks' efforts to control it. The dollar gained ground.
- The S&P 500 and Nasdaq 100 futures fell, signalling a pause after two days of gains in the underlying indexes. As traders braced for a crucial European Central Bank meeting, the Stoxx Europe 600 index fell and the region's bonds fell. Treasury yields rose as well, bringing the benchmark 10-year rate back to 3%.
- Concerns that rising interest rates will stifle economic growth and harm corporate earnings remain a source of concern. The European Central Bank is set to end trillions of euros in asset purchases on Thursday as a prelude to a rate hike in July, which will mark the end of eight years of negative interest rates.
- Later this week, the focus will shift to the US consumer price index reading for clues on the Federal Reserve's rate path following the central bank's large hike on May 4th.
- Money markets wager on 200 basis points of ECB rate hikes by May 2023.
- Turkish foreign minister: I see a will to return to negotiations between Russia and Ukraine.
- France's Finance Min. Le Maire: The inflation peak bound is to last several more weeks, maybe several more months.
- Eurozone Money Markets now price in 75 BPS of ECB rate hikes by September, vs around 70 BPS on Friday.
