European financial stocks led markets lower Tuesday as investors trimmed bets on a faster exit from easy monetary policy by the European Central Bank amid slowing inflation.
European stock markets were mixed Friday after occasional spots of positive news proved unable to fully offset the effect of a cocktail of uncertainties dogging investors.
The goal of shrinking it now is to reduce the Fed's deep involvement in global financial markets while curbing incentives for companies to load up on cheap debt.
Expect two more rate hikes this year, taking interest rates to a range of 1.25% to 1.5%. Morgan Stanley predicts the next one may come as soon as June.