- Bets on Chinese stimulus measures and the hope that an economic downturn may not be as severe as anticipated helped equity markets try to recover from recent volatility.
- As the tech benchmark fell 1.4% on Monday, Nasdaq 100 futures rose 0.4%, indicating that investors are preparing for a recovery.
- After Christine Lagarde's rejection of an impending stop to the cycle of interest rate hikes, European stocks were marginally down. The Stoxx 600 Index fell 0.1%, marking the longest losing run since February 2018 and the sixth day of falls.
- The market is adjusting to the idea that the Federal Reserve won't lower interest rates this year and that other central banks would keep hiking rates in order to combat inflation. The Fed is expected to raise rates by 25 basis points next month, according to economists at Morgan Stanley.
- On the plus side, investors are increasingly speculating that any recession may be brief and less detrimental to earnings than anticipated.
- ECB's President Lagarde: Rates are to stay elevated for as long as necessary.
- Euribor options wagers congregrate around 4% ECB Rate by September.
- HSBC warns a US recession is coming this year — with Europe to follow in 2024 - CNBC.
