- Stocks and equities futures fell as Australia's central bank sparked concern that tightening cycles will be prolonged globally by policymakers.
- Growth-sensitive industries like energy and real estate helped to keep the Stoxx 600 index from declining by as much as 0.4%. Following a profit beat and a $2 billion share buyback, HSBC defied the trend. After both indices closed Monday with a slight loss, contracts on the S&P 500 and Nasdaq fluctuated between gains and losses.
- For the time being, the turmoil in US banking has come to an end thanks to a government-brokered agreement for JPMorgan to buy the struggling First Republic Bank. Investors, meanwhile, worry that lending restrictions may impede an economy already under stress from the most ferocious rate-hike campaign in decades. Data from the euro zone, which showed that banks had significantly reduced lending, confirmed these worries.
- The Federal Reserve is anticipated to hike rates by a quarter point during its two-day meeting that begins on Tuesday. Although the so-called core measure slowed for the first time in ten months in the euro zone, preliminary data showed that headline inflation continued to accelerate. At its meeting this week, the European Central Bank is anticipated to choose a 25 basis-point increase, though a larger half-point move is not completely ruled out.
- Oil prices stabilised after initially declining due to worries about China's economic prospects and the effects of the turbulence in US finance. This year, prices have already decreased by more than 5%.
- RBA Cash Rate Actual 3.85% (Forecast 3.6%, Previous 3.60%) (AUD Strengthened)
- 5% peak BoE bank rate fully priced for the first time since April 21st - Sources.
- ECB BLS: Net 27% of Euro Zone banks reported tightening of lending standards for companies in Q1 2023.
- ECB BLS: Net 38% of Euro Zone banks reported a fall in demand for credit from companies in Q1 2023.
- US Five-year credit default swaps widen to 71 bps from 70 bps at the last close - S&P Global Market Intelligence.