- US index futures fell on Friday, and stocks extended losses, as hot US inflation fuelled bets on faster Fed interest-rate hikes amid febrile monetary-policy speculation.
- The selloff in sovereign bonds has slowed, with the 10-year Treasury yield falling about three basis points to hover around 2%. The two-year yield was little changed after rising to its highest level since 2009 on Thursday. Europe's bonds were mixed, with Germany's 10-year yield falling two basis points. the dollar rose.
- Contracts on the S&P 500 and the NASDAQ 100 fell. The STOXX Europe 600 index fell nearly 1%, with technology and real estate stocks leading the way.
- The European benchmark is still on track for its first weekly gain this year.
- Bonds were battered on Thursday by a surprise increase in US inflation, which prompted hawkish comments from Fed's Bullard, who said he supports raising rates by a full percentage point by the beginning of July, including the first half-point hike since 2000. He speculated on a move in between scheduled policy reviews. Other Fed officials, however, are not in a hurry to raise rates before their meeting next month, and a 50 basis point increase in March does not appear to be imminent.
- IEA cautions that an OPEC+ supply shortage might push oil prices higher.
- HSBC sees 50 bps Fed hike in March. The also forecasts 150 bps increase in Fed rates in 2022.
- Traders wager that the Bank of England rate will climb to 2% by November.
- Traders price at least one 50 bp BoE hike by May.
- In 2021, the UK economy increased 7.5%, the highest rate since World War II.
- Russia: We can't accept EU and NATO answers to Russian Foreign Min. Lavrov letter - IFX
