(Bloomberg) — European stocks fell with U.S. futures Tuesday as central banks resolute on tightening policy fanned growth fears. The dollar advanced and bond yields stabilized.

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The Stoxx Europe 600 Index slipped as telecom and technology stocks weighed. In the UK, the export-heavy FTSE 100 was little changed as the pound slid on concerns about the nation’s growth and risks to Boris Johnson’s leadership.

Investors are reluctant to take on risk and volatility remains elevated. Equities are struggling to mount a sustainable rebound amid fears policy makers need to be even more aggressive in their withdrawal of stimulus to rein in inflation, hurting the economy and corporate earnings.

“We are going to continue to bounce back and forth through the summer,” Julie Biel, portfolio manager and senior research analyst at Kayne Anderson Rudnick, said on Bloomberg Radio. “Overall, people are trying to find some sense of direction, just how we are going to land this economy without a recession, this so-called soft landing.”

Rising bond yields are adding to worries about risks to economic growth as central banks ratchet up policy tightening. US benchmark Treasury yields stabilized near 3%, a psychological threshold that may burden new supply due this week before crucial inflation data.

The European Central Bank on Thursday is set to end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates.

Earlier, the Reserve Bank of Australia blindsided the market with an outsized hike to combat rising costs. The RBA responded to price pressures with its biggest rate increase in 22 years — predicted by just three of 29 economists — and indicated it remained committed to “doing what is necessary” to rein in inflationary pressures.

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Read more: RBA Wrongfoots Market With Outsized Hike, Sending Yields Soaring

Meanwhile, the dollar advanced and the yen sank to a 20-year low.

MSCI Inc.’s gauge of Asia-Pacific shares fell the most in more than a week. Equities in Japan gained as a falling yen boosted exporters.

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Key events to watch this week:

  • World Bank’s “Global Economic Prospects” report Tuesday

  • Reserve Bank of India rate decision Wednesday

  • OECD Economic Outlook, a twice-yearly analysis of major global economic trends and prospects for the next two years. Wednesday

  • European Central Bank rate decision, Christine Lagarde briefing, Thursday

  • China trade, new yuan loans, money supply, aggregate financing. Thursday

  • US CPI, University of Michigan consumer sentiment Friday

  • China CPI, PPI Friday

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