(+0.3%m/m and +0.4%m/m)

Equities reversed the previous day’s gains amid hawkish Fedspeak, solid US activity data, and high German inflation. The S&P500 is down 2.7%. Bond yields rose and fell, while currencies were rangebound amid quarter-end rebalancing.

The Bank of England surprised markets by announcing a temporary bond buying programme. Global bond yields fell in response, and risk sentiment rose. The S&P500 is up 2.1%, and the defensive US dollar fell sharply.

Risk sentiment improved further ahead of tonight’s important US inflation update. The S&P500 is up 1.0%, bond yields are slightly higher, and the defensive US dollar is lower.

US bond yields rose further amid hawkish Fedspeak, but that did not deter equity markets – the S&P500 closing up 1.5%. The risk-seeking mood hurt the USD.

Bond yields rose after the ECB hiked by 75bp. Equities weren’t too ruffled, though, the S&P500 up 0.7%, and currencies are little changed.

Bond yields retreated amid some paring of tightening expectations of the ECB and BoE, as well as less hawkish Fed commentary and a slump in oil prices. That helped US equities, the S&P500 up 1.9%, while the US dollar fell.

Bond yields extended a month-old rise amid hefty corporate bond issuance and US data showing robust services activity. That helped boost the USD to a fresh 20-year high, and unnerved equities – the S&P500 down 0.4%.

Markets were mostly contained overnight given the US holiday. The Eurostoxx 50 closed down 1,5% amid energy shortages and recession concerns, while S&P500 futures are up 0.3%. Bond yields rebounded, and the USD is slightly higher.

A lukewarm US jobs report helped push bond yields lower. The closure of a gas pipeline to Europe helped the USD recover and hurt equities, the S&P500 closing down 1.1%.