Early Morning Reid

Global markets are navigating a 'risk-off' environment driven by a hawkish repricing of Fed rate expectations following strong jobs data and mounting Middle East conflict. Major indices, particularly tech-heavy benchmarks, faced significant pressure as investors braced for upcoming inflation prints.

Key Takeaways

• 1.A hawkish Fed repricing following strong US payrolls triggered a significant sell-off in US equities, with the S&P 500 experiencing its worst day of the year.
• 2.Geopolitical tensions in the Middle East have escalated with renewed strikes between Iran and Israel, leading to increased volatility and a spike in oil prices.
• 3.Market focus has shifted toward upcoming US inflation data (CPI/PPI) and the Federal Reserve's policy trajectory, with markets pricing in increased odds of rate hikes.

Table of Contents

• Day-by-day calendar of events
• Other Market Data
• Key Economic Data
• Topical Deutsche Bank publications:
• Appendix 1