Futures rise, pound gains as global selloff pauses

Bloomberg

Global markets remained on edge on Tuesday as investors braced for a heightened risk of global recession, even as dip buyers emerged.
Most stocks rise as Goldman Sachs Group Inc. and BlackRock Inc. soured on equities for the short term and Citigroup Inc. said bearish positioning continues to rise. Tech giants including Apple, Amazon.com and Alphabet advanced more than 1% in premarket trading as US index futures rebounded with Europe’s Stoxx 600.
Pressure on bonds eased after the worst selloff in decades, with the benchmark 10-year Treasury yield retreating from the highest level since 2010. The dollar gauge held near a record high set, when Federal Reserve officials repeated hawkish comments on policy.
UK markets clawed back some losses after a meltdown triggered by the government’s fiscal plan late last week. Gilt yields slid following the biggest-ever surge and the pound rose about 1% after falling to a record low.
Volatility across markets was also reflected by risk of future price swings, which reached the highest since the beginning of the pandemic, as shown by a Bank of America index.
Meanwhile, Germany suspects the damage to the Nord Stream pipeline system used to transport Russian gas to Europe was the result of sabotage. Benchmark European gas prices climbed as much as 12% on Tuesday, after four days of losses. Oil and gold also rose.
The turmoil in markets shows little sign of turning Fed officials away from hawkish rhetoric. Boston Fed President Susan Collins and her Cleveland counterpart Loretta Mester said additional tightening is needed to rein in stubbornly high inflation and Atlanta Fed President Raphael Bostic also said the central bank still has a ways to go to control inflation.
“The market is pricing in some Fed increases, but we’re a bit worried that it might not be pricing in everything,” Laila Pence, president of Pence Wealth Management, said on Bloomberg Television.