- European equities fell along with US futures on Monday, as investors braced for bond market turbulence and the end of the Fed's stimulus program.
- On the Stoxx Europe 600, cyclical equities in energy companies and banking linked to economic expansion were among the largest gainers, offsetting drops in technology and real estate. Nasdaq 100 contracts trailed behind the S&P 500's.
- Following a worldwide bond selloff last week that spurred a shift out of high-growth equities and into cheaper cyclical companies, treasury rates have remained stable at approximately 1.7%.
- Markets are becoming more volatile as investors try to figure out how to reprice assets as the flood of liquidity that propelled shares to new highs is removed. The newest consumer price index data from the United States, which is due this week, will be closely scrutinized as the Federal Reserve prepares to cool pricing pressures with faster-than-expected rate hikes.
- According to Goldman Sachs, the US Federal Reserve will hike interest rates four times in 2022, up from three previously predicted.
- Fed's Barkin: I support the Fed's December shift toward a more hawkish attitude; a March rate hike is conceivable.
- NATO Sec. Gen. Stoltenberg: We won't be able to overcome all of our differences with Russia this week, but we might be able to agree on a path forward and hold future talks.
- Faster Fed rate hikes might roil financial markets, weakening US demand and causing capital outflows from emerging markets, according to the IMF.
