S&P 500 futures were down 2.5 percent and Nasdaq 100 was down 3.1 percent. The S&P 500 is flirting with a bear market after Friday’s consumer price shock report sparked sales of more than $ 1 trillion. The Stoxx 600 traded at its lowest level since early March. Yields on 10-year US bonds reached 3.24%, the highest since October 2018, while the sale of European government bonds also accelerated, with the yield on Germany’s two-year government debt rising by more than 1 percent for the first time. times in more than a decade. The exit from stocks and bonds is gaining momentum amid fears that the central banks’ fight against inflation will end up killing economic growth. The reversals along the Treasury Department’s yield curve suggest fears that the Fed’s sharp rise in interest rates will trigger a hard landing. “The Fed will not be able to stop the tightening, let alone start loosening,” said James Athey, abrdn’s investment director. “If all the world central banks deliver the cost price, there will be significant negative shocks to the economies.” Traders are now pricing the Fed at 175 basis points, tightening by September, implying two halves and a 75 basis point increase. If that happens, it will be the first time since 1994 that the Fed has resorted to such a draconian measure. Meanwhile, the dollar climbed while the yen fell to a 24-year low. Oil and iron ore are falling among growth-sensitive commodities. The bad feeling was also evident in a cryptocurrency slide that pushed Bitcoin below $ 25,000 to its lowest level in 18 months. What to watch this week:

First WTO ministerial meeting in almost five years. Until June 15. ECB’s Louis de Guido will speak on Monday. PPI USA, Tuesday. Data on China’s core economic activity, liquidity operations, medium-term borrowing, Wednesday. FOMC interest rate decision, briefing by President Jerome Powell, US business inventories, imperial construction, retail sales, Wednesday. ECB President Christine Lagarde is due to speak on Wednesday. Bank of England interest rate decision, Thursday. US Housing Start, Initial Unemployment Claims, Thursday. Bank of Japan policy decision Friday. Eurozone CPI, Friday. Top US Conference Board Index, Industrial Production, Friday

Some of the main movements in the markets:

inventories

Futures on the S&P 500 fell 2.5% at 5:51 a.m. New York time Nasdaq 100 futures fell 3.1%. Dow Jones Industrial Average futures fell 2%. The Stoxx Europe 600 fell 2.2%. The MSCI World Index fell 1 percent

currency

The Bloomberg Dollar Spot Index rose 0.7%. The euro fell 0.5 percent to $ 1.0464 The British pound fell 0.9% to 1.2208 US dollars The Japanese yen fell slightly to 134.49 per dollar

Links

The yield on 10-year bonds rose eight basis points to 3.23 percent Germany’s 10-year yield rose five basis points to 1.56%. Britain’s 10-year yield rose three basis points to 2.48%.

Goods

Crude West Texas Intermediate fell 1.4% to $ 119 a barrel Gold futures fell 0.9 percent to $ 1,859.20 an ounce