- Tuesday saw a decline in both stocks and US Treasuries as the second quarter surge was resisted by economic headwinds and indications that positioning was overdone.
-Overinflated values and adverse economic conditions are challenges faced by investors who are trapped between the fear of missing out and worries that markets have raced too far, too quickly. According to Citi strategists, bullish posture in US stock futures increased last week, reaching the most stretched levels for the S&P 500 and Nasdaq 100 in records going back to 2010.
- Another unpredictability is the direction of US monetary policy. On Wednesday, Jerome Powell, the chairman of the Federal Reserve, will present his semi-annual report to Congress. At their most recent meeting, Fed policymakers held interest rates constant but issued a warning about additional tightening to come. Investors also anticipate the results of policy discussions in Switzerland, the UK, and Turkey.
- Beijing plans a new training facility in Cuba, raising prospect of Chinese troops on America’s doorstep - WSJ.
- US-listed shares of Chinese companies decline premarket after less than expected cut in country's Key Lending Rate.
