US stock futures and US Treasuries are trading differently amid concerns about the slowdown in the global economy.

The S&P 500 and Nasdaq 100 futures contracts changed little. Investors are awaiting minutes from the Federal Reserve's latest meeting to assess its policy objectives. The US dollar has been rising for the fourth day in a row.

Europe's Stoxx50 and DAX have reached this year's lows. However, they are currently trading slightly above their lows.

Today, the equity benchmark jumped nearly 1.4% in the EU as the cheapest valuations in two years attracted traders betting on a strong start to the earnings-reporting season. Travel and leisure companies were the best-performing subgroup in the Stoxx 600.

While bargain hunters chasing technology stocks boosted US equity gauges on Tuesday, it only helped to mask a deepening slump in stocks linked to economic activity, such as energy, commodity, and industrial names. A renewed spike in China's Covid cases and a worsening gas crisis in Europe signaled that a global slowdown was coming even as central banks tightened monetary policy to contain consumer prices.

Chief Investment Officer for long-biased strategies at Kirkoswald Asset Management Diana Amoa said that markets were sandwiched between two opposing forces and it would last for the next few months. She added that they were moving from trade with slow growth to trade with high inflation.

According to the latest forecasts from Bloomberg Economics, the odds of a US recession in the next year are now at 38%.

Shanghai launched a massive Covid test in nine areas after coronavirus cases were detected in the past two days, raising fears that the city could be locked down again due to China's zero-Covid approach. The Shanghai Composite index fell to its lowest level since May 24.

The Moscow Exchange index is recovering after a collapse linked to the rejection of dividend payments by Gazprom.

What to watch this week:

• FOMC minutes, US PMIs, ISM services, JOLTS jobs openings, Wednesday
• EIA crude oil inventory report, Thursday
• Fed Governor Christopher Waller and St. Louis Fed President James Bullard, scheduled to speak, Thursday
• ECB account on its June policy meeting, Thursday
• US employment report for June, Friday