Probably a Bit More Markets Pain Ahead: 3-Minutes MLIV

• Asian markets displayed resilience, recovering from an initial negative start, with US futures also looking buoyant.
• ECB is expected to raise rates by 25bps, but this is not anticipated to be a major market driver.
• US May PPI data is a significant concern, with expectations of a high headline number that could signal further margin squeeze for US stocks.
• The overall inflationary outlook remains negative due to unresolved supply shocks and the potential for rising yields to pressure equities.

Global markets show mixed signals, with Asian equities recovering despite a negative start, while US futures are buoyant. However, analysts express caution regarding persistent inflation, particularly ahead of US PPI data, and anticipate further pressure on stock markets.