- As traders evaluate the outlook for monetary policy ahead of important inflation data later this week, US equities futures struggled to find direction on Monday, hinting to a gloomy opening on Wall Street.
- After the S&P 500 barometer increased 1.9% on Friday to snap its longest losing streak since February, contracts on the index varied. The Nasdaq 100 futures were unchanged. As US regional banks rebound from a selloff caused by concerns about the stability of the financial system and the recent failure of numerous institutions, PacWest increased by as much as 16% in premarket trading, extending Friday's strong rally and setting the bar for gains in the sector. For the seventh day in a row, a dollar index fell.
- Since the beginning of April, US stocks have moved sideways as better-than-expected company earnings countered worries about an economic slowdown and the strength of regional banks. The Federal Reserve is expected to keep rates high for longer, which will put pressure on consumer spending, business profitability, and bank balance sheets. This prediction was bolstered by strong jobs statistics released on Friday.
- Rates on swap contracts based on Fed meetings, which briefly priced in a cut in July on Thursday, increased to levels compatible with a steady policy rate until September, followed by at least two quarter-point decreases by year's end. Data on consumer inflation from Wednesday may offer additional hints about the rate's trajectory.
- China's Foreign Ministry, on the EU proposing sanctions on Chinese firms aiding Russia's war machine: If these sanctions happen it will worsen China relations, we will take firm actions to safeguard our interests.
- Exec. VP EU Commission Dombrovskis: We are aiming to conclude the EU-Australia FTA in Summer.
