- Stocks fell and the dollar strengthened after Minneapolis Fed President Neel Kashkari's comments dimmed expectations of speedy interest rate cuts by the US central bank.
- Futures on the S&P 500 fell more than 0.3%, indicating that the US equity benchmark will end a six-day winning streak, while Europe's STOXX 600 index fell similarly. For the first time in more than two months, West Texas Intermediate crude fell below $80 a barrel. The value of the dollar increased.
- In an appearance with Fox News on Monday, Kashkari said it's too soon to declare triumph over inflation. He also stated that three months of promising evidence on inflation is insufficient.
- Meanwhile, bond markets rebounded, headed by the UK, when Bank of England Chief Economist Huw Pill signalled that rate cuts could be on the table by the middle of 2024, while German industrial output data showed that a recession isn't far away. Two-year gilt yields declined ten basis points to 4.6%, while 10-Yr Treasury yields fell five basis points to 4.59%.
- US and NATO will suspend involvement in landmark Cold War arms treaty with Russia - WSJ.
- Traders fully price three quarter-point BoE rate cuts next year.
