- US futures and equities were stable on Thursday, but Treasury rates maintained their previous session's steep increase.
- With ASML being the greatest drag on the STOXX 600, concern that central banks would continue to raise interest rates caused IT stocks in Europe to have one of the worst performances among industries. GameStop's stock tumbled 18% in US premarket trade after it fired its CEO and reported sales that didn't meet expectations. Following the index's sharpest loss since April yesterday, Nasdaq 100 futures were little changed.
- Investors are feeling the squeeze as they speculate that the Federal Reserve may not be done with its own tightening. Technology companies, which are among the most rate-sensitive of all equities, are feeling the pinch. This week, two significant central banks—the Reserve Bank of Australia and the Bank of Canada—unexpectedly increased interest rates in an effort to rein in inflation.
- Trading in other markets was restrained. Although the 10-Yr rate increased by 14 basis points on Wednesday, Treasury rates remained unchanged. Against its rivals, the dollar dropped.
- Citi expects BoC to deliver another 25 BPS rate hike in July.
- Turkey state banks resume lira support after Wednesday's slump.
