- US equity futures were little changed as traders awaited inflation data to see if policymakers would keep interest rates higher for longer.
- Contracts for the S&P 500 and the tech-heavy Nasdaq 100 were mostly unchanged in premarket trading, with Ford gaining following a double-upgrade from UBS. Apple appeared headed for a second day of losses after China raised concerns about iPhone security while stating that it is not prohibiting purchases.
- Meanwhile, Europe's Stoxx 600 fell 0.6% as fears of stagflation grew. The pound fell to a three-month low after the UK economy contracted at the fastest rate in seven months. Crude prices rose in response to the International Energy Agency's warnings.
- Markets are anticipating US price data on Wednesday, which could show a third month of subdued core inflation, bolstering the case for the Federal Reserve to stop raising interest rates. This contrasts with the difficulties faced in Europe, where traders are increasing their bets that the European Central Bank will raise interest rates on Thursday amid rising inflationary concerns, despite the German government predicting a contraction rather than sluggish growth this year.
- Crude rose after the International Energy Agency warned that supply cuts by Saudi Arabia and Russia would increase volatility. WTI rose for a second day, and Brent rose above $92 per barrel as the IEA warned that production cuts will result in a "significant supply shortfall."
- Money Markets fully price a 25 bps ECB rate rise by the year-end and a 75% chance of a hike this week.
- Goldman Sachs cuts the UK'S 2023 GDP growth forecast to 0.3% from 0.5%.
