Open: London Session | Forex, Metals, Oil, Agriculture August 12, 2022

investors

Oil

On the finished goods basis traditionally used, PPI in June reached its highest level since the first month of the oil embargo in 1973. The gains reflect a tight market for natural gas used to fuel power plants as Russia cuts supplies just as Europe works to replenish stockpiles for winter. Floating LNG units for Europe.

United States

Coming Up European shares are on course for a flat start, while Asian shares advanced as traders weighed the Fed’s next steps for keeping inflation in check. Bond yields should fall, as the Fed would logically seem unlikely to keep rates either as high or as long as had been feared. But those close to Biden describe him as buoyed by recent legislative, economic and foreign policy victories and committed to again deny Trump a return to the Oval Office.
The NY Fed puts trend underlying CPI inflation in a 4.7% to 5.9% range. The Atlanta Fed s July sticky-price core CPI increased 5.2% m/m SAAR and is up 6.8% on a 3-month annualized basis. Allison Schrager: Fed’s Damage to Housing Market May Last YearsWant more from Bloomberg Opinion?

China

American military commanders estimate President Xi Jinping may have the capability to take action across the Taiwan Strait in as soon as five years. While inflation risks are back on the PBOC s radar, they won t be a problem, according to David Qu and Chang Shu.

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