Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. Stocks erase early losses in volatile trading. Quant funds rue this week’s market moves. And UK home sales may be about to jump. Here’s what people are talking about.
Most Asian stock indexes erased earlier losses Thursday amid a bout of volatile trading as investors digest signals from central banks on the path ahead for interest rates. Global markets have been rocked this week as investors prepare for the US and Japanese central banks to move in opposite directions, in turn undermining the yen’s role as a cheap source of funding. Oil steadied after its biggest advance in a week, with markets on edge over a possible retaliatory strike by Iran on Israel. JPMorgan Chase & Co. now sees a 35% chance the US economy tips into recession this year, up from 25% as of the start of last month. US news “hints at a sharper-than-expected weakening in labor demand and early signs of labor shedding,” JPMorgan economists led by Bruce Kasman wrote in a note to clients Wednesday. The team kept the odds of a recession by the second half of 2025 at 45%. Meanwhile, the investment bank’s Chief Executive Officer Jamie Dimon said he’s skeptical inflation will return to the Federal Reserve’s 2% target, citing risks including deficit spending and “remilitarization of the world.”
Read Mark’s views on the outlook for oil below.