- European equities fell ahead of a European Central Bank decision that will tighten the region's monetary policy and help close the gap with global peers.
- The Stoxx Europe 600 index fell 0.5%, led by property firms and retailers. The S&P 500 and Nasdaq 100 contracts advanced after Wall Street ended a two-day rally. Stocks in China and Hong Kong, as well as a fading tech rally, drained Asian shares.
- While officials are not expected to raise official borrowing costs, President Christine Lagarde indicated in a blog post last month that the central bank will end bond purchases this month and hike twice in July and September, raising the deposit rate from minus 0.5% to zero.
- Some investors see a new tone that goes beyond the official line as central bankers succumb to enormous pressure to rein in record inflation that is more than four times their target of 2%. This year, the Federal Reserve, the Bank of Canada, and the Reserve Bank of Australia have all raised interest rates by 50 basis points.
- Benchmark Treasury yields remained above 3%, while the 10-year yield in New Zealand reached its highest level in seven years. Prior to the ECB decision, German bunds were stable.
- Oil fluctuated near $122 per barrel as a robust global market for refined fuels offset a renewed lockdown in parts of Shanghai, the financial hub's first major restrictions on movement since it ended a two-month shutdown at the beginning of June.
- Kremlin: No agreement reached with Turkey on Ukrainian grain, work continues.
- IAEA Director-General Grossi will hold a news conference on Iran at 1:15 PM (11:15 GMT).
- Traders add to BoE bets, and put 50 BPS hike in play by September.
