Equities trying to recover from yesterday's collapse

European bourses are seen higher during the London session on Wednesday, trying to erase yesterday's losses, with US equity futures are also rising notably at the time of writing.
The Nasdaq 100 index dropped more than 2.5% Monday and fell to six-week lows below 14,800 USD amid soaring US yields. The 10-year yield was up four consecutive days, and it rose from 1.3% to 1.55%. That was a very sharp adjustment in yields to the upside. Additionally, it looks like the recent consolidation in the bond market is over, and the bear market might be renewed, possibly sending yields further higher.

The greenback continues to gain support from the rising yields, sending the EURUSD pair below August lows. At the time of writing, the pair was down to 1.1660, a level last seen in November 2020. The USDJPY pair advanced above 111, while the cable dropped to 1.35.

Federal Reserve Chairman Jerome Powell highlighted "upside risks" to inflation in his testimony to the Senate Banking Committee on Tuesday, not helped by surging global energy prices. Until now, the Fed has kept rates at zero and QE at a record monthly pace because inflation was supposed to be only transitory. 

Now, when it is evident to everyone that inflation would not be transitory but long-lasting, they still keep rates at zero and QE at a record pace. So how is this institution beneficial to the financial stability, especially when its members are trading stocks, influenced by their own decisions at the Fed?

Later in the day, Powell's second day of testimony continues, followed by the ECB Lagarde's two speeches, possibly influencing the markets again.
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