- On Tuesday, US equity futures pared gains, while a rally in European stocks was short-lived, indicating that markets aren't quite out of the woods following a sell-off fueled by anticipation of more aggressive Federal Reserve interest-rate hikes to combat inflation.

- After losing $1.3 trillion in market capitalization and entering a bear market on Monday, S&P 500 contracts dropped off session highs to trade at 0.6%, signifying some reprieve. The Nasdaq 100 futures increased by around 0.9%. After the 10-year yield rose to a height not seen since 2011, the dollar remained stable near a two-year high, and Treasuries held gains. However, the yield curve remained flat, highlighting concerns about an economic slowdown triggered by tighter monetary policy.

- The Stoxx Europe 600 index fell for a sixth day, extending its losing run to the longest since the outbreak began and closed at its lowest level in 15 months. Most European bonds fell, but Gilts defied the trend as statistics revealed that UK families' spending power had plummeted as inflation undermined wage rises.

- This quarter is on track to produce the largest combined loss in global bonds and stocks since 1990, according to data dating back to 1990. The forecast is roiled by the biggest inflation in a decade, fueled by supply-chain and commodity-market disruptions amid China's COVID problems and the war in Ukraine. The main concern is whether the Fed and other major central banks' tightening of financial conditions would push their economies into recession.

- ECB's Knot stated that the real probability of ECB rates are to rise further in October and December, Knot added that the ECB rates must rise 0.25 points in September if conditions are the same.