Global stocks retreated on Monday from 14-month highs hit last week, as investors awaited testimony from US Federal Reserve Chairman Jerome Powell in markets still dominated by monetary policy bets.

Bets that the Bank of England will raise interest rates to a 15-year high this week, as inflation continues to rise more than four times its target, boosted sterling.

Money markets are now putting a 75% chance of the Bank of England choosing a 25bp rate hike and a 25% chance of a 50bp rate hike.

NB