- Stocks wobbled as US Treasury yields resumed their rise, returning to 16-year highs set the day before.
- Europe's STOXX 600 index swung between gains and losses, trading near six-month lows, while S&P 500 index futures were flat. After rising by about 10 basis points the previous day, US yields increased by two basis points.
- The benchmark 10-Yr yield has risen 140 basis points since its April low, as expectations of Fed rate cuts have gradually faded. Instead, markets are pricing in a one-in-three chance of a rate hike in November due to the strength of the US economy and labour market. This has put pressure on equity markets, with the S&P 500 losing ground for the past two months.
- ECB’s Lane: December isn't the end of the inflation challenge.
- ECB's Valimaki: Further rate hikes can't be ruled out.
