- Concern over broader contagion from the banking instability decreased as investors watched data for hints on monetary policy, but US futures and European markets struggled to find direction. Treasuries dropped.
- S&P 500 contract prices barely changed, but gains in European stocks were erased. In premarket trade, First Republic Bank increased, poised to continue Monday's gain. Alibaba increased more than 7% as a result of the e-commerce company's announcement that it would split into six divisions, each of which would raise money independently and consider going public.
- Société Generale plunged on news that France's financial prosecutor is searching five banks as part of an investigation into tax evasion and money laundering, and banks across Europe reversed an advance as a result.
- Although instability in the banking industry shook markets earlier this month, traders have been cautiously moving towards a risk-on stance this week. A number of Federal Reserve officials will speak, and a number of US studies, including one on the Fed's favoured inflation measure, will be of particular interest. Later today, consumer confidence data are expected.
- After rising beyond 4% on Monday, the yield on US 2-year Treasury bonds increased further. A measure of dollar strength declined in price.
- ECB's Rehn: The decision on a digital euro is expected in Autumn.
- Russian Energy Minister: We expect oil and gas production to decline in 2023 in Russia.
-ECB's Muller: It is likely still possible to hike interest rates.