Futures bounce back with stocks; Treasuries gain

Markets showed signs of stabilizing on Wednesday after minutes of the Federal Reserve’s last policy meeting provided more clarity on the central bank’s campaign to quell rampant inflation.

Markets showed signs of stabilizing on Wednesday after minutes of the Federal Reserve’s last policy meeting provided more clarity on the central bank’s campaign to quell rampant inflation.

S&P 500 futures edged higher, while contracts on the Nasdaq 100 rose about 0.4 per cent after the gauge posted its deepest two-session drop in nearly a month. Ten-year Treasury yields ticked lower. A gauge of the dollar’s strength extended its rally to a sixth day, the longest streak in almost 10 months.

Europe’s Stoxx 600 gained 0.7 per cent, boosted by a rally in shares of Atlantia SpA, the billionaire Benettons’ highway and airport group. Atlantia added 10 per cent in Italian trading after a non-binding bid from Global Infrastructure Partners and Brookfield Asset Management Inc.

The energy sector was in the red, dragging the U.K.’s benchmark FTSE 100 down, as Shell Plc’s hit from its withdrawal from Russia weighed on oil producers. The statement from the London-based giant shows that, despite a surge in oil and gas prices, Russia’s invasion of Ukraine has upended the supermajors’ plans and left them scrambling to adapt to historic shifts in energy markets.

The Fed minutes showed officials were focused on tamping down inflation and outlined plans to pare the balance sheet by more than US$1 trillion a year. Though hawkish, the minutes provided some clarity for investors who were concerned that a too-aggressive tightening path could stall economic growth.