September 14, 2022
US Stocks Set for Bounce After $1.5 Trillion Inflation-Led Rout
US stock-index futures were set to recoup some of the losses brought on by a hotter-than-expected inflation report that wiped more than $1.5 trillion off the S&P 500 on Tuesday, nearly erasing a four-day rally.
Contracts on the S&P 500 gained 0.6% at 5:17 a.m. in New York after the underlying index plunged 4.3%, its biggest drop since June 2020. The data added to concern the Federal Reserve will need to push interest rates much higher to contain price pressures, raising the risk of a recession. Nasdaq 100 futures rose 0.7% after the tech-heavy gauge tumbled 5.5% in its worst day since March 2020. In premarket trading, tech giants including Apple Inc. and Microsoft Corp. climbed.
Gas Selloff Hints at Glimmer of Hope for Europe’s Winter
The fever in European gas markets has eased in recent weeks, with prices falling about 40% as storage levels look healthy, painful industry shutdowns destroy demand and policy makers draw up emergency measures to help with the crisis.
Storage sites are about 84% full, overshooting targets and helping build confidence that supplies won’t run short as temperatures drop. A mild winter could mean Europe scrapes through the season without severe disruptions to supply.
Asia Pushback Grows as Fed Fears Ripple Across the Region
Policy makers in Asia pushed back against a surging dollar, seeking to stem losses as their currencies teetered on the brink of key levels that may trigger more selling.
The Bank of Japan is said to have called banks asking for an indicative price at which it could intervene, spurring traders to drive the currency higher. South Korea also ramped up the rhetoric, while China’s central bank set the daily reference rate on the yuan at the strongest bias on record.
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