Pre-holiday rally in the market
2022.12.02 02:40
Budrigannews.com – Although some markets are preparing for the holidays, the problem with credit rights is just one of many tests that the markets have to go through during this period from the moment at the end of the year.
At the upcoming meeting of OPEC ministers and Policy Makers at the Central Bank of Australia, data from the United States will be a real test of the changing nature of the inflationary situation. Kevin Backland, Pablo Mizo Cerqueiro, London, Dhara Ranasingi and Karina Strohecker, New York, and Ira Yosebashvili, New York will present their views on the coming week in Tokyo.
Perhaps Credit Suise executives will have to sit down and openly discuss whether the bank’s latest strategic plans are enough to make investors excited. In recent days, as part of the restructuring program, shareholders were offered to contribute approximately 2 billion francs aimed at creating a troubled investment bank of the group, as a result of which the shares of the Zurich holding fell to new lows.
The rights issue will end on Thursday, so the underwriters may be left with unaccounted shares. One management company stated that many other banks, which have clearer prospects for profitability, are trading at low prices. Investors are experiencing difficult decisions.
The market knows that in a year full of twists and turns, it is impossible to accept any signs of calm. The most recent setback that the markets have inflicted is the biggest wave of civil innocence in China since the Tiananmen protests in 1989. Its impact on Beijing’s strict measures to combat coronavirus and the reopening of the economy 2 will be closely considered.
The drama will continue over the coming weeks at meetings of the Bank of England, the European Central Bank and the Fed. Hypotheses about a rapid increase in interest rates on loans remain a priority. The ideas of peak rates, peak inflation and China’s job recovery are quite encouraging to some people. Recently, September is the best month in 2009.
Maybe it’s time to start a rally in Santa Claus after a number of months of suffering due to aggressive rate hikes, as well as high inflation. Taking into account the Federal Reserve’s rate hike by 375 basis points, aimed at combating inflation over a ten-year period, data on the US services sector will show the situation in the economy on Monday. For October, data show that enterprises are still paying more resources, although the service sector grew at the slowest pace in almost six months. This indicated the transition of inflation from goods to services.
Concerns about higher prices, which persist, despite all the efforts of the Federal Reserve System, may be exacerbated by signs that this trend is intensifying. Such a change also worried Federal Reserve Chairman Jerome Powell, heightening concerns about the tight labor market needed to balance.
Traders who are encouraged by signs of falling prices believe that the Reserve Bank of Australia will leave rates unchanged on Tuesday. The money market is betting on a choice between a 2.85 drop in cash rates or another quarter-point increase after an unexpected slowdown in inflation in early October.
Economists agree on an increase, which indicates more confidence in this. But some now believe that the final outcome of the cycle may come in December. This should not stop the growth of dollars, which in recent years has been caused, rather, by hopes for the restoration of China’s work, as well as weaker dollars than the United States.
On Sunday, representatives of OPEC oil producers will personally meet in Vienna for the first time since the coronavirus to discuss production targets of the world’s largest companies. The group’s recent initiative to communicate online has raised questions about whether they will make additional supply cuts or will maintain the policy in the future.
The meeting is being held at a time when Russian business segments are preparing for the next EU deal to limit oil prices and to limit the time imposed by the coalition on December 5 for a complete ban on the purchase of marine products in Moscow. Quarantine in China due to the coronavirus has led to a decrease in oil demand and pressure on prices.
According to recent surveys, prices will remain above $100 per barrel at the end of 2022, but next year they will fall about $93 due to economic problems.
