Open: London Session | Forex, Metals, Oil, Agriculture October 05, 2022



That s manifested in rising US stocks, a falling dollar, and falling US bond yields, but it s most striking in those markets that were previously most oversold.


The OPEC+ coalition meets to consider an output cut of as much as 2 million barrels a day, double what was previously anticipated.

United States

The last few weeks had seen a steady abandonment of the idea that the Fed would truly pivot and make several outright interest rate cuts next year. Points of Return Risk is back on, and the reason is that hopes for a Fed pivot are also back. Truss will try to save her premiership, Musk wants to buy Twitter (again), no pivot yet for the Fed and concerns over Credit S View in browser Good morning. The stock market staged a dramatic selloff culminating on Christmas Eve, and within days Fed governors were explicitly walking back their previous policy.
Truss will try to save her premiership, Musk wants to buy Twitter (again), no pivot yet for the Fed and concerns over Credit Suisse heighten. A monthly US Labor Department report on job openings also suggested labor demand is beginning to recede — a key development for the Fed. A pause or at least slackening of the pace of rate hikes is likely before long, as the Fed waits to see if its policy is having an effect.
The Fed under Chair Jerome Powell had insisted that it would keep raising rates while selling off its bond portfolio on autopilot. This incident won t topple the capital markets, or force the Fed into a pivot. Fed pivot is even trending on Twitter.


Separately, she told our media roundtable that the EU plans to keep its 2025 target for U.K. clearinghouses to lose access to the bloc s markets. The recent moves are disquieting, and suggest that the ECB, at least, is working on the assumption that it may be required to make a pivot. Truss is heading to Prague tomorrow to meet with EU leaders and discuss migration, security and other challenges. Both the Brexit referendum and the mini-budget sparked sharp falls of more than 10%: Within the REIT structure, this is sustainable.
Liz Truss has softened the UK s approach, while the EU notes it s long been ready to find solutions. In 2016, more or less exactly the same thing happened after the Brexit referendum. ECB s Panetta won t be the next Italian finance minister.