European markets are expected to open lower amid aggressive tightening expectations
On Tuesday, The dollar gained for a second day, reaching a new two-decade high against the yen, as concerns about inflation lifted Treasury yields and hurt equity markets. Australian central bank raised interest rates on Tuesday by the most in 22 years. It warned of more tightening as it battles to contain surging inflation. The move stunned markets and sent the Australian dollar soaring. The Reserve Bank of Australia (RBA) raised its cash rate by 50 basis points to 0.85% at the end of its June policy meeting, shocking investors who had wagered on a move of 25 or 40 basis points. Stock markets in Europe are expected to open lower on Tuesday amid concerns about monetary policy tightening to combat inflation, while the United Kingdom faces political uncertainty. Sterling weakens due to UK political turmoil Tuesday will also be a critical day for the UK market following Prime Minister Boris Johnson's defeat in a vote of no-confidence from his own lawmakers. Johnson now faces the di...