- On Tuesday, China's new economic assistance measures helped commodities and equities rise, but policymakers' cautions about higher interest rates lasting longer dampened the mood.
- When numerous Fed officials reiterated the need to tighten further this year, futures on the S&P 500 and Nasdaq 100 struggled to build on Monday's small gains, raising worries that the world's largest economy may enter a recession. Treasury yields decreased, and the dollar index fell for a third day in a row.
- While central bank officials in Europe and the US are warning that the fight against inflation has turned a corner, they equally caution that higher rates will need to be in place for a longer period of time in order to maintain price stability. For stock bulls, who had to endure a dismal start to the second half of the year after outstanding gains in the first half, that's a mixed blessing. They'll have more time to reflect as second-quarter earnings season approaches.
- When Governing Council member Villeroy stated that the European Central Bank is nearly finished raising interest rates but added that they will remain at a "high level" for some time, the STOXX Europe 600 index was on course for a third day of gains.
- The UK’s benchmark fell as the latest wage data added pressure on the Bank of England to keep raising rates. Bonds rose, with the German 10-Yr yield falling five basis points to 2.59%.
- UK Interest Rate swaps show investors see a 70% chance of a 50 BPS Bank of England rate hike on August 3rd.
