Close: London Session | Forex, Metals, Oil, Agriculture December 06, 2022

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Currencies

The euro area is set to start the year in recession, with output flat for 2023 overall as high energy prices and tighter financial conditions drag. The dollar pulled back from earlier highs to trade flat while Treasuries eked out small gains. The turn saw China s yuan climbing past 7 per dollar on Monday, for the first time since September. The dollar also appears to have peaked, thanks to those falling US yields.

Metals

The US and EU are weighing new tariffs on Chinese steel and aluminum in an effort to reduce carbon emissions and global overcapacity. Brent fell and gold climbed, while Bitcoin slipped for a second straight day.

Oil

Explainers you can use Water Crisis Is Biggest Risk for African Food, Agri CEO Says Can the New Oil Price Cap Starve Russia s War Effort?

United States

Will the US experience a mild recession next year, as JPMorgan predicts, or will it enjoy a soft landing, as Morgan Stanley expects? The US will see a contraction starting in the third quarter with Fed hikes hitting rate-sensitive sectors and unemployment climbing to 4.5%. Cautious markets US equity futures traded in small ranges, with S&P 500 and Nasdaq 100 contracts little changed as of 6:10 a.m. in New York. Cold Medicine It used to be said that when the US sneezed, the rest of the world caught a cold.
In the US, American Airlines and Delta are signed up, but Asia is still very poorly covered, Schreiber said.That may be about to change. Which asset stands to benefit the most from the upcoming Fed decision?

China

That s going to be a challenge as the full costs of Beijing s isolation over the past three years have yet to be paid. Rebecca Choong Wilkins A demonstrator holds a sign reading There is faith in our soul during a protest in Beijing on Nov. 27. But first…Today s must-reads: Beijing View in browser Hey there, it s Jillian in Brussels.

Europe

Photographer: Marcelo Perez del Carpio/Bloomberg The European Union sealed a late-night deal to curb its role in global deforestation through its supply chains for key commodities.

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