- Following Wall Street's worst week since December, which saw traders adjust to central bank policies that may remain tight for longer than imagined on both sides of the Atlantic, european equities and US equity futures markets pushed higher early Monday.
- The Stoxx 600 index increased by more than 1%, led by retailers and technology companies, with increases across all business sectors. The tech-heavy Nasdaq 100 and S&P 500 futures both gained at least 0.5%. Shares of Hennes & Mauritz, a single name stock, increased by as much as 4.2% after Bank of America raised its rating on the company. A rumour that pfizer inc. is in preliminary talks to acquire the company developing cancer therapies caused seagen inc. to increase by nearly 12% in the US premarket.
- After three weeks of falls, investors are returning to US stocks due to lower values. An upbeat forecast for profit predictions is allaying concerns that inflation will persist despite sluggish growth. According to chief us equities strategist at Morgan Stanley, Michael Wilson, investors who enter this market run the danger of getting into a bull trap.
- Stock markets, which had largely ignored predictions of increased interest rates, are now making room for a quick repricing of yields. As a result of an acceleration in the federal reserve's preferred inflation gauge, traders now expect the US interest rate to peak at 5.4% this year, up from approximately 5% just a month ago.
- German benchmark rates in Europe reached 2.58%, their highest level since 2011, on speculation that the European Central Bank may continue its tightening cycle past this year.
- The latest supply interruption in Europe and hopes for a revival in demand in China were overshadowed by worries that the Fed will continue rising rates, which led to a decline in oil prices elsewhere in the markets. Gold was stable.
