ECB States Policy Being Adjusted “To Try and Stop High Inflation” from Becoming “Entrenched”

U.S. stock futures are trading down slightly this European afternoon, following a 5th straight day of losses for the S&P 500 as Wall Street weighed the likelihood of another bear market.

U.S. equities were mostly flat-to-lower yesterday as concerns about a possible recession continue to rattle the market. The S&P 500 was down slightly, while the Nasdaq Composite dipped 0.5%. Oil futures continued their post-price-cap-announcement declines, and are now at the lowest levels since the beginning of the year.

Today on the economic front, the U.S. Labor Department is scheduled to release its standard weekly jobless claims report for the week ended Dec. 3 at the market open. Consensus expects the number of Americans claiming unemployment benefits to rise to 230,000 from 225,000 in the previous week.

Equitywise, tech stocks were particularly hard-hit yesterday. Shares of Alphabet (GOOGL) and Salesforce (CRM) dropped 2%. Apple (AAPL) and Intel (INTC) shares lost around 1%. Tesla (TSLA) shares nosedived 3% after the EV-maker announced deepening of price reductions for vehicles sold in China.

Pfizer (PFE) said the Food and Drug Administration (FDA) has accepted a priority review of the drugmaker’s experimental vaccine for respiratory syncytial virus (RSV) for elderly patients. Pfizer indicated the FDA is expected to decide on approval by May of next year. Pfizer explained the FDA move came after the company reported in August that a Phase 3 study of the treatment showed positive results in protecting those aged 60 and older.

Commoditywise, crude oil futures are eventually advancing today, as the commodity recovered from a 4-session losing streak. A barrel of WTI-grade crude oil is trading about 0.72% higher at $73.73, while Brent crude oil stands at slightly above $78/bbl at the time of writing.

Meanwhile, European markets are moving only slightly downwards this afternoon as investors’ concern over the state of the global economy and inflation is rising. The pan-European Stoxx 600 was down 0.2% as of 2:00 p.m. CET, with telecoms shedding 1.2% while oil and gas stocks added 0.8%. The German DAX declined 0.16% concurrently. At the same time, the British FTSE 100 lost 0.09%, while the French CAC 40 fell 0.06%. The euro traded flat against the dollar, selling for 1.05178. The pound Sterling, in its turn, decreased 0.2% against the greenback to 1.21876. The European Central Bank’s President Christine Lagarde stated earlier today, while attending the sixth annual conference of the European Systemic Risk Board, that monetary policy is being adjusted in an effort to try and stop “high inflation” from becoming “entrenched.” Lagarde once again reiterated that the monetary policy will continue to target the 2% inflation target, adding that it is of crucial importance to uphold the “resilience of our financial system.” Lagarde also explained that this “resilience is key in helping the financial system to deliver on its ultimate goal of supporting the real economy.”

The Asia-Pacific markets showed lackluster sentiment earlier this morning. Hong Kong’s Hang Seng Index, however, stood out with a 3%+ upside, as a local news outlet reported the city is considering easing Covid measures further, including lifting its outdoor mask rule and relaxing mandatory testing for arrivals. Meanwhile, the majority of other markets in the region slid mildly into the red.