- US equity-index futures increased and global equities rallied for a seventh day on indications central banks are avoiding a hard landing of the economy by delaying the tightening of monetary policy.
- S&P 500 and Nasdaq 100 index contracts both saw gains of at least 0.3%. The benchmark for global shares maintained by MSCI rose to its highest point since February 16th. When shares of banks and industrial companies rose, European stocks increased to a one-month high. An 0PEC+ plan for output cuts triggered short covering, allowing crude oil to extend advances. The currency and Treasury bonds declined. After announcing a 19% increase in deliveries in China, Tesla saw its stock rise in New York's premarket trade.
- Traders are turning around from their initial bearish reaction to the oil cartel's plan and are now wagering that the Federal Reserve won't be able to accelerate the pace of interest-rate hikes due to the impact of higher crude prices on the economic recovery. Markets were more confident in sticking to their predictions for more than 50 basis points of Fed rate cuts later this year as a result of the Reserve Bank of Australia pausing its tightening cycle and a decrease in European consumers' inflation expectations.
- Gains in European and Japanese stocks on Tuesday were supported by rallies in banking shares. The Stoxx 600 reached its highest point since March 9 as the banking sector, led by BNP, increased by 22%.
- BoE’s Tenreyro: To avoid a large inflation undershoot, I expect the current high level of the Bank Rate will necessitate an earlier and faster reversal.