► European shares faced their fourth consecutive day of decline, with the Stoxx 600 benchmark falling by over 0.4%. Despite the ECB's dovish stance, investor confidence falls off; many believe that central banks have limited scope for interest rate cuts in view of stubborn inflation. Investors are waiting for the publication of important inflation data (consumer price index for the Eurozone and Germany) later this week.
► US equity futures are trading 0.2% – 0.3% lower in early US pre-market trading after a slight decline. US Treasury yields remain elevated, but show signs of stabilizing. The 10-year rate achieved a 16-year peak on Monday.
► FED officials emphasized the potential for further US interest rate hikes. Some analysts suggested that the interest rate scenario remains tight and US interest rates might escalate to 7% (highly unlikely – Robert), an alarming scenario that could surprise consumers and enterprises. On another front, Moody’s Investors Service cautioned that a potential US government shutdown could negatively impact America's credit rating, keeping investors attentive to an impending month-end deadline.
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