Equities and Bonds Pause as Traders Await more from the Fed – Europe Market Wrap

Global bond markets recovered after the largest two-day drop in months, as equities sought direction amid mixed earnings.

10-Yr Treasuries posted small moves after yields soared about 28 BPS in the previous two sessions. European equities and S&P 500 futures were little changed.

Strong US economic data has forced traders to reduce their bets on interest rate cuts, and Chair Jerome Powell reiterated his wait-and-see stance in an interview on Sunday. A number of Federal Reserve officials are scheduled to speak this week, which may provide additional insight into the central bank’s thinking.

German Industrial Orders MoM Actual 8.9% (Forecast -0.2%, Previous 0.3%) [Euro strengthened]