Posted on October 25, 2022 Last week closed with many changes, one of the most important is the different message from the FED in the line followed until now, placing a ceiling for the interest rate at 4.75%. Another turn has been the collapse in the price of gas, in the commodity market the price of oil is resisting due to expectations of a reactivation of growth in China, the policy of OPEC + cuts and the threat of new sanctions to Iran. In the United States, it emerged that several members of the FED are considering slowing down the rate of hikes soon, therefore, the market is giving a higher probability of a 50 bps hike for December. In the debt market, bonds lowered their profitability, thus the 10-year bond traded at 4.15% (from 4.33%) and the 2-year bond at 4.43% (-18bp). On the other hand, the US stock market turned to the upside after the European close, after hearing a news item from the Wall Street Journal, which pointed to a possible brake on rate hikes by the FED and rose a spectacular 2.37% in the S&P 500 and similarly on Nasdaq and Dow Jones. In Asia, the inflation figure for Japan in September presented year-on-year growth of 3%, in line with the figure for the previous month (3%) and market expectations (3.1%), registering maximum levels since 2014. In the United Kingdom, retail sales contracted -1.4% in September compared to August, worsening compared to the data estimated by analysts (-0.5%). British consumer confidence was -47 points, improving slightly compared to the previous period (-49 points) and the market consensus (-52 points), despite continuing in negative territory. INFORMATIONTitleChange of speech at the FEDDescriptionLast week closed with quite a few changes, one of the most important being the different message from the FED in the line followed until now, setting a ceiling for the interest rate at 4.75%. Author GLOBALCAJA
Change of speech in the FED
