- Stocks slightly declined as cautious investors evaluated the most recent earnings and anticipated a report on US inflation for clues about the direction of Federal Reserve rate hikes.
- Contracts for the S&P 500 and the NASDAQ 100 declined.
-Investors were particularly focused on the US inflation statistics released on Wednesday, with US stocks expected to rise if the reading is mild enough to pave the way for a stop to Fed tightening, according to Goldman Sachs and JPMorgan analysts. The headline CPI is predicted to have increased by 5% in April compared to the same month last year, which is still significantly higher than the Fed's goal level of 2%.
- ECB's Nagel: There is still work to be done on core inflation. We could have gone for a bigger rate increase last week.
- ECB's President Lagarde: We still have more ground to cover.
- Deutsche Bank: We sees potential dovish risks at the BoE meeting this Thursday.
- US DoJ is looking at short selling activity in regional bank shares, according to a source.
- Two-year Treasury yields that are affected by policy increased somewhat to 4.04%, while 10-year yields decreased marginally to 3.50%. The dollar strength index remained stable.
