Open: London Session | Forex, Metals, Oil, Agriculture October 31, 2022

investors

Agriculture

Wheat in Chicago jumped as much as 7.7% to $8.9325 a bushel at the open on Monday before paring gains to 5.9% by 10:06 a.m. in Singapore.

Currencies

Germany, France and Italy reported record inflation readings last week, and figures due today are predicted to show an all-time inflation high of 10.3% for the entire euro zone. The euro has dropped over that period while the most significant increase in trading volume, as might be imagined, is in the Chinese yuan.

Oil

Late Summer | European proposals to set limits on the price paid for natural gas are hypocritical, Qatar s energy minister Saad Al Kaabi told Bloomberg TV. OPEC unveils its 2022 World Oil Outlook.

United States

The S&P 500 consensus estimate for next year needs to fall toward $212 per share.In short, particularly for the Fed, bad news might have been better. It takes longer to compile than the better known CPI (Consumer Price Index) and so tends to cause less excitement, but the Fed takes it seriously. The question is whether the Fed wants to allow such a narrative to bloom and the inevitable loosening in financial conditions it would bring. Coming Up European stocks are set to rise, in step with gains in Asia and the US amid optimism over company results.
If the market is going to stay this buoyant, it grows that much harder for the Fed to pivot. On a year-on-year basis, it is unchanged from August, more than two percentage points above the Fed s targets. Vildana Hajric and Katherine Greifeld: Bad S&P 500 Earnings Are Playing Right Into the Fed s HandsWant more Bloomberg Opinion?

Europe

The bloc s key weapon may be the Digital Services Act, which became law this month and gives the EU unprecedented powers to police tech platforms. Dark Days | Finland has become the most energy-intensive economy in the EU, but with winter approaching, it s bracing for rolling blackouts in response to Russian energy cuts. US Trade Representative Katherine Tai is in Prague, where EU trade ministers are holding an informal meeting. Read more about how upcoming EU-US trade talks are shaping up.
This was one of the hopes of Brexit, and it seems unlikely.

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