The floor of the New York Stock Exchange in New York. US stocks fell into a bear market on Monday, a decline of more than 20 percent from their peak in January, a sign of growing pessimism about the outlook for the economy.
However, investors appeared to be shaking off the gloom heading into European trade with the pan-region Euro Stoxx 50 futures up 0.83 per cent, German DAX futures 0.9 per cent higher and FTSE futures rising 0.62 per cent. US stock futures also added 1.17 per cent. Expectations for aggressive U.S rate hikes have risen after inflation in the year to May shot up by a sharper than predicted 8.6 per cent.
On Wall Street overnight, fears of a US recession kicked the S&P 500 down 3.88 per cent, while the Nasdaq Composite lost 4.68 per cent. The Dow Jones Industrial Average fell 2.8 per cent.