USA Stock Futures and European Stocks Recover After Hawkish Fed Comment

US futures and European shares rebounded on Thursday comparing some of the previous day’s losses that ensured the evidence that the Federal Reserve policymakers are determined to fight inflation, even as interest rates hike aggressively and hurt the stock market. 

Investors believed that the Fed will be much more aggressive than previously expected. Bond yields soared after the minutes were released, while the benchmark stock index fell by more than 2%. Former Fed Governor William Dudley even suggested that policymakers need to target the stock market to curb inflation.

Richmond Fed President Thomas Barkin said that the Fed could certainly raise the interest rates by 50 basis points once again if it were necessary to prevent inflation expectations from unanchoring.

In Europe, the Stoxx 600 index rose 0.63% in early trading Thursday, while in Asia, China’s CSI 300 slipped 1.28% and Tokyo’s Nikkel 224 fell 1.69%. The Treasury yields hit three-year highs on Wednesday, rising by as much as 10 basis points at one point in the day. 

Brent crude futures rose 1.21% to trade at $102.28 a barrel, while West Texas Intermediate gained 1.14% to trade at about $97.27 a barrel after it fell below $100 on Wednesday. 

Cryptocurrencies also fell, driven lower by the Fed’s minutes. Bitcoin was down 4.07% at $43,527 and Ethereum fell 3.79% to trade at $3,230.69, according to the CoinMarketCap data.