Ankur Banerjee's outlook on European and global markets, along with his predictions for the future.
The 'do-they-won't-they' discussion over yen intervention has now morphed to 'did-they-didn't-they' speculation, after the Japanese currency briefly breached 150 per cent in U.S. trade and then abruptly reversed course, rising to 147.30.
Japan's finance minister and its top currency diplomat are not making any direct comment on the yen, but Tokyo has no such move to support the yen.
In Asia, the yen was just above the 150,000 mark and last at 149.27 per dollar.
As investors come to terms with a new era of higher-for-longer interest rates, the global bond market is no longer slowing. The bond market continues to sell bonds, sending yields up with the 10-year Treasury yield at a fresh 16-year peak. The benchmark Japanese government bond yield clung to a 10-year high.
It all makes for a yet another risk-averse and jittery European session, with futures indicating a lower open.
Investors will also be interested in the political drama in the United States, where a few Republicans in the U.S. House of Representatives on Tuesday ousted Republican Speaker Kevin McCarthy.
The British media regulator Ofcom will this week push for a antitrust investigation into Amazon and Microsoft's dominance of Britain's cloud computing market, sources familiar with the matter told Reuters.
In corporate news, Meta is planning to lay off employees in the unit of its metaverse-oriented Reality Labs division focused on creating custom silicon, two sources familiar with the matter told Reuters on Tuesday. Reuters was not able to determine the extent of the cuts.
What could affect markets on Wednesday - key developments that could impact stock market?