Investors debated whether last week's selloff had gone far enough to price in concerns about increasing rates and slower growth as US index futures and equities in Europe rebounded on Monday.
After the worst week for the underlying measure since the start of the pandemic, S&P 500 contracts gained approximately 1.1%. The Nasdaq 100 futures increased by almost 1.1%. A dollar index fell somewhat.
The gain in the Stoxx Europe 600 index was led by banks, travel & leisure, and energy companies. Construction companies dropped as basic resources underperformed due to a drop in raw-material prices. Swiss engineering group Abb ltd. dropped after postponing an IPO of its electric-car charging business, citing turbulent market conditions, reflecting the sector's uncertainty.
After President Emmanuel Macron lost his absolute majority in parliament, France's share benchmark fell, putting Macron's reform agenda in jeopardy. In a series of setbacks reminiscent of the 1970s, UK bonds plummeted as the country faced rising inflation, labour strikes, and a mounting likelihood of recession.
Investors are looking for an entry point into equities markets roiled by mounting price pressures and fears that aggressive monetary tightening could tip major economies into recession, hence volatility indicators have remained elevated.
Stock market pressure might ease in the second quarter as inflation moderates, according to JP Morgan strategists, while others, including Morgan Stanley, warned that additional losses could be in store.
