Geopolitical risks
2022.12.29 06:41
Investors are wary of the outlook for the coming year, and on Wednesday, US stocks are once again lower as geopolitical headlines and a lack of liquidity exacerbate monetary policy concerns.
This week’s unexpected news from China and Russia introduces an unexpected shudder of uncertainty into the final week of the year against a backdrop of low volume trading and a lack of data.
As investors consider the effects of China’s reopening and Russia’s new oil ban, markets are adopting a defensive stance on Wednesday.
However, in case you were wondering if the downturn is actually taking place, there was a significant decline in on Wednesday, which was 4% month-over-month, quadrupling the expected decline.
The bad news now: Beginning in early 2023, as the delayed effect of Fed policy hits Corporate America, even weaker economic figures will emerge. The Fed is floundering in the dark as a result of this uncertainty.
Returning to the markets, yields on Treasuries have increased to 3.88 percent, continuing their upward trend.
There are a number of reasons to be cautious about rate cuts that traders anticipate the Fed will implement in the second half of 2023.
The most obvious is that inflation is unlikely to return to 2% in a way that can be sustained in the near future.
More Some disappointment of investors in stocks
Officials have made it abundantly clear that this condition must be met before the Committee would even lightly tap the accelerator or take the brakes off.
is also falling, likely representing the market’s predominant sense of uncertainty regarding the outlook for Fed policy and the recession. Oil prices should rise as a result of decreased supply from Russia and increased demand from China’s reopening.
