European indices are marked lower across the board, dropping by nearly 1% for the most part.
- Eurostoxx -0.9%
- Germany DAX -1.1%
- France CAC 40 -0.9%
- UK FTSE -0.4%
- Spain IBEX -0.5%
- Italy FTSE MIB -1.0%
US futures have also turned lower with S&P 500 futures down 0.4%, Nasdaq futures down 0.6%, and Dow futures down 0.3%. The more hawkish Fed talk yesterday has spooked markets somewhat but I reckon sentiment is also looking rather iffy for the most part. Inflation worries, China lockdown, surging bond yields are all part and parcel of the picture at the moment.
While equities have done well to recover from the March low, it is still a challenging outlook for the time being. That might make for more two-way and volatile action in the weeks/months ahead.
In the bigger picture though, a lot will come down to the Fed outlook as Adam pointed out here.
