- Concerns over inflation and monetary tightening outweighed earnings optimism fueled by Amazon.com, and the dollar headed for its worst week since November 2020.
- After previous increases of up to 2.3%, futures on the Nasdaq 100 index traded 0.3% higher. Amazon's premarket gains, which were initially fueled by a price boost for prime subscribers, were cut. The Stoxx 600 index in Europe plummeted the most in a week as bets on rate hikes lowered risk appetite. The price of oil was set to rise for the seventh week in a row.
- Friday's volatility comes on the heels of Facebook owner Meta Platform's $251 billion loss on Thursday, which caused a worldwide technology sell-off and dragged down US indices. While the world's largest economy's overall profits picture remains strong, fears of persistent inflation have grown as statistics indicated that gasoline prices in the United States rose to their highest level in more than seven years.
- In the event that the Ukraine situation disrupts supply, the US has asked Japan to redirect some LNG shipments to Europe. - Japanese Official Sources.
- Eurozone Money Markets are pricing in 50 basis points of ECB rate rises By December 2022.
- Traders expect the ECB deposit rate to reach zero by the end of the year.
- Goldman Sachs: The ECB is expected to boost its deposit rate by 25 BPS in September and December 2022.
