Equity futures in the United States increased dramatically on Tuesday, as the dollar secured on advances against its global peers, and Treasury yields plummeted multi-year highs, as investors prepare for another difficult session ahead of the Federal Reserve''s policy announcement later on Wednesday.
For the first time since December 2018, benchmark 10-year note yields climbed to 3% for the first time since December 2018, bringing 10-year German bunds to 1% for the first time since 2015, owing to tight central bank indications and the highest inflation statistics in the years.
FedWatch, led by CME Group, is pricing in a 99.8% probability of a 50 basis point increase on Wednesday, as well as a 95.6% probability of a 75 basis point move at the Fed''s following its meeting in June.
"The chance for the Federal Reserve to make a soft landing has likely closed, since the economy is already beginning to weaken before the bulk of the Federal Reserve''s inflation-fighting tightening actions have taken place," said DiMartino Booth, president and chief strategist. "The last economic pillar standing is the job market, but were already seeing a decrease in new job postings and the beginnings of layoff announcements as companies battle with the profit margin squeeze brought on by stagflation."
The Reserve Bank of Australia has gone from signal to action with its first rate rise in over a decade overnight, lifting its benchmark ''cash rate'' by 25 basis points to 0.35 percent, in a surprise move that shook regional markets.
Solid earnings and a more attractive currency helped the Stoxx 600 achieve a modest 0.1% increase mid-day, but the dollar index slowed at a 20-year high of 103.627 against a group of its global peers.
Biogen''s stock slides on Q1 earnings as a result of the mismatch; CEO Michel Vounatsos leaves the stock.
Pfizer surpasses its Q1 earnings forecast for Covid Vaccine sales and cuts its 2022 profit forecast.
Five Reasons for Rising Copper Prices
China''s inability to reduce its Covid infections in 2022 continued to push oil prices down, even amid the intensification of speculation of a Russian export ban.
Brent contracts for July fell $1.54 to trade at $106.05 per barrel, while WTI crude futures for June delivery were marked $1.62 lower in overnight trading to change hands at $103.49 per barrel.
Futures linked to the Dow Jones Industrial Average are looking at a 45 point rise while those linked to the S&P 500 are priced for a 10-point decrease.
Pfizer Inc. Reports fell 0.8 percent after showing strong-than-expected first quarter earnings, owing to increased vaccine sales and a robust near-term forecast, but reduced its full-year profit prediction amid changes in the way pharmaceutical companies account for milestone payments and acquisitions.
Get Biogen Inc. Reportshares fell 4.1 percent after the drugmaker recorded less-than-expected first quarter earnings and said its CEO, Michel Vounatsos, would withdraw from his position later this year.
Get Tesla Inc Report and Twitter (TWTR) - Elon Musk is looking for a wide range of financing to help his $44 billion acquisition of the social media organization, according to a report that might relieve pressure on existing Tesla investors.
The stock of BP plc''s BP U.S.-listed stocks rose 4.8 percent as the oil firm posted its highest underly quarterly earnings since 2008, boosting its buyback plans, despite a $24 billion decline attributed to its withdrawal from Russia earlier this year.