Open: London Session | Forex, Metals, Oil, Agriculture December 16, 2022

investors

Oil

EU leaders moved closer toward a much-debated cap on the price of natural gas, but are leaving it to energy ministers to set a price level on Monday.

United States

The strategists suggest that this was the market s way of signaling to the Fed that they have raised rates enough. The Fed has moved to the structural side, says Davies, while the market is still more on the transitory side. Fed policymakers may well yet prove to be wrong, but are at the moment determined to err by tightening too much rather than too little. Source: Ned Davis Research Still, the Fed didn t get that message and hiked too far, and tilted the economy into a recession.
If structural inflation really is back, investors had better ditch their assumption that the Fed always blinks. The obvious risk to a downshift or pausing is that they have not done enough and will be forced to resume tightening later in 2023(Fed). The Fed, and other central banks, have been able to foster liquidity comfortable in the belief that there s no risk that they will stoke inflation by doing so. Why are we seeing a repeat of the market s message that the Fed has gone too far?
Isabelle Lee Survival Tips My tip to end the week is not to pay $99 to start collecting Donald Trump digital trading cards. Faced with the possibility of Japanese-style malaise, the Fed tried to keep rates low.

Europe

Bosnia-Herzegovina The European Union granted Bosnia-Herzegovina the status of candidate country, a symbolic step on a path toward membership that is expected to take years.

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