- Concerns about tighter policy continued as US futures sank with European equities at the close of a turbulent week, overshadowing solid earnings from Apple. After an earlier rise, futures on all three main US indexes were down, with those on the Nasdaq 100 giving up gains of up to 1.4%.
- In premarket trade, Apple climbed, while Chevron sank due to dismal earnings. European benchmarks were driven down by declines in tech and car stocks, which outweighed strong results from retailer Hennes &Mauritz.
- The dollar gauge rose, while Treasuries fell. Gains in Japan outweighed drops in China, lifting an Asia-pacific stock index for the first time in six days.
- The Federal Reserve suggested aggressive tightening this week, rumbling global markets, as geopolitical risks and an uneven earnings season added to investor anxieties. On Friday, Germany's economy dropped more than predicted, and a measure of euro-area confidence plummeted to a nine-month low, further dampening the mood.
- Value stocks are outperforming frothier equities as investors prepare for increasing rates and exits from frothier equities.
- By September, traders expect 100 basis points of Fed rate hikes, up from November the previous.
- In the event of a Russian invasion, the US envoy to Moscow warns the Nord Stream 2 pipeline will be part of punitive penalties.
- German Economy Minister Habeck: German GDP will rise by 2.3% in 2023.
