Stocks slide

The euro and sterling have both slipped back against the dollar to just under $1.05 and to around $1.2350 respectively, leaving the single currency marginally firmer against the pound trading a little below 85p

Equity markets in the US sold off sharply yesterday with the S&P 500 down 4% by the close of business, and European stocks are in negative territory today falling by around 1.5% in early trading

Government bonds have rallied as stocks decline. US and German 10-yields are both around 10bps lower at about 2.85% and 0.95% respectively,  while equivalent UK yields are down to 1.80%

Fed member Evans says the central bank is “going to be moving (interest rates) expeditiously towards something much more like a ‘neutral’ rate”, adding that “my own assessment of ‘neutral’ is in the 2.25-2.5% range”

The annual rate of CPI inflation in the Euro area in April was revised down a touch to 7.4% according to the final reading yesterday, with the core – or underlying – rate confirmed at 3.5%

Data due today includes Euro area construction output and jobless claims in the US