US futures fall and oil hovers at $100 as recession fears stalk markets

• US futures slipped on Wednesday and oil hovered at $100 a barrel as recession fears stalked markets.
• Oil tumbled on Tuesday as traders prepared for a likely drop in demand as the world economy slows.

US stock futures slipped on Wednesday and oil hovered around the $100 level as markets weighed up the twin threats of inflation and recession.

$4 were down 0.12% as of 5.35 a.m. ET. $4 were 0.1% lower, and $4 had fallen 0.11%.

$4, the US benchmark oil price, rose 0.81% to $100.32 a barrel after $4 on Tuesday as investors sold commodities over fears of an impending global recession. $4, the global benchmark, rose 1.46% to $104.24 a barrel.

"Inflation and central bank strategies to get prices in check by curbing demand are increasing the likelihood of a recession," Louise Dickson, senior analyst at consultancy Rystad Energy, said.

"If a recession materializes and inflation continues to push prices for almost everything higher, oil demand is almost certain to fall, bringing prices with it."

Oil prices were also dragged lower Tuesday by a sharp rise in the dollar, which hit a 20-year high against a basket of other currencies as nervous investors moved into the safe-haven currency. A stronger greenback tends to make oil — which is priced in dollars — drop in value. The $4 rose 0.15% to 106.69 Wednesday.

Stocks in Europe rebounded on Wednesday after falling sharply the previous day, with the continent-wide Stoxx 600 index 1.17% higher in morning trading.

London's $4 stock index also rebounded, rising 1.3%, despite two senior members of Prime Minister Boris Johnson's cabinet resigning $4 to the leader.

Stocks in Asia turned broadly lower overnight, with Tokyo's $4 falling 1.2% and China's $4 dropping 1.46%.

Investors get the latest look at the US economy on Friday when June's employment report is released. The labor market has remained strong even as inflation has surged to a 41-year high, giving the Federal Reserve the green light to keep $4.

But analysts polled by Bloomberg expect the US economy to have added 265,000 jobs in June, down from 390,000 in May.

"We forecast that payroll employment growth slowed fairly sharply in June, but remained solid at 250,000," said Andrew Hunter, senior US economist at consultancy Capital Economics. "That should be enough to keep the Fed on track for another 75 basis point rate hike in July."

The yield on the $4 rose by a basis point to 2.816%. Bond yields, which move inversely to prices, have fallen in recent days as investors have sought the safety of government debt.

Elsewhere in markets, $4 hovered around the $20,000 mark. The cryptocurrency, which has plunged more than 50% this year, was down around 1% to $20,180 according to Bloomberg prices.