- US equity futures fell alongside equities as a rally in technology firms faded and ongoing inflationary pressures entrenched expectations of additional interest rate hikes in the US and Europe. Treasuries gained ground.
- Futures on the S&P 500 and NASDAQ 100 fell after Amazon issued a warning after the market closed about growth in its major cloud computing sector, dampening investor sentiment. Treasuries recovered some of their losses from Thursday, with the 10-Yr benchmark yield decreasing approximately five basis points. The 2-Yr policy-sensitive rate stayed over 4%.
- Markets are still on edge after data showing a surprising uptick in US inflation pressures boosted expectations of a Federal Reserve interest rate hike next week, and potentially in June. A resurgence in French growth and a stronger-than-expected expansion in Spain have fueled expectations that Europe can avoid a recession, but an increase in consumer-price gains leads to more rate hikes by the ECB, which meets next week.
- Lenders led down in Europe's STOXX 600 equities benchmark, with the STOXX 600 Banks Index suffering its worst drop in a month due to surging inflation.
- BoJ: We will continue to expand the monetary base until the YoY rate of increase in the CPI exceeds 2% and remains steady above the objective.
The BoJ withdraws forward guidance that promised to keep interest rates at current or lower levels.
- French CPI was hotter than expected (Euro strengthened)
- German Government Spokesperson: German Chancellery isn't at present pushing ahead with plans for an export ban on chip chemicals to China.
- US Officials coordinate rescue discussions for First Republic Bank according to sources.