Markets fell in Europe, as early optimism about Siemens’ earnings waned and doubts arose that the European Central Bank might slow rate hikes soon. More talk from Fed officials that rates are not high enough to tame inflation pressured equities.
Using even “dovish” assumptions, a basic monetary policy rule would require rates to rise to at least around 5%, while stricter assumptions would recommend rates above 7%, Bullard said at an economic event in Louisville, Kentucky. MSCI’s gauge of stocks across the globe shed 0.65% while the pan-European STOXX 600 index lost 0.42%, but was up 3.9% for the month due to better-than-feared earnings despite worries of a recession in the eurozone.
Sterling slid 0.35% on the day after the new British government delivered a new budget plan of 55 billion pounds ofConcerns about the economic outlook deepened the inverted yield curve, suggesting investors are braced for recession but also anticipating lower rates on longer-dated securities, said Joe LaVorgna, chief US economist at SMBC Nikko Securities in New York.