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Fed React: Powell is finally ready to take on inflation, Retail Sales revisions, Oil lower, Gold tumbles, Bitcoin higher

US stocks went on a rollercoaster ride after a hawkish FOMC statement initially sent risky assets lower, but then turned positive after Fed Chair Powell tentatively convinced markets they will not be too late with fighting inflation. Much of today went as expected with the Fed raising rates by 25 basis points and addressing how the war in Ukraine is driving additional inflationary pressures. The Fed’s 2022 forecast for inflation was raised from 2.6% to 4.3%.

16-03-2022 15:49 GMT by Edward Moya

NZD extends gains ahead of GDP, FOMC meeting

The New Zealand dollar has extended its gains for a second straight day. NZD/USD is trading just above the 0.68 line in the North American session. All eyes on Federal Reserve The Federal Reserve is poised to raise rates by 0.25% at today's meeting.

16-03-2022 13:17 GMT by Kenneth Fisher

Oil and gold continue to lose ground

Oil slips further below USD 100 Oil prices are continuing to fall in the middle of the week as progress in talks between Ukraine and Russia see crude premiums being eroded. Whether that's premature or not, we'll soon see, especially with disruptions already being reported in recent weeks. While an end to the fighting will reduce the cloud of uncertainty for the global economy, it will not put an end to the sanctions that have already been imposed on Russia, or any that will follow.

16-03-2022 12:58 GMT by Craig Erlam

Equities buoyed by ceasefire talks

Equity markets are continuing to bounce back strongly on Wednesday, as talks between Ukraine and Russia appear to be nearing a conclusion that could put an end to the invasion. Given how the events have unfolded over the last month, I remain cautiously optimistic at best about a deal. Especially when you consider that Russian attacks on Ukraine are continuing during the negotiations.

16-03-2022 12:51 GMT by Craig Erlam

Canadian dollar rises as CPI surges

The Canadian dollar has extended its gains into a second day. In the North American session, USD/CAD is trading at 1.2697, down 0.52% on the day. Canada's inflation accelerates Canada's inflation rate shows no signs of slowing down.

16-03-2022 10:16 GMT by Kenneth Fisher

Asia stock markets rally

China eases Covid restrictions Asian stock markets are rallying today, especially under-pressure Chinese ones, as the price of oil fell overnight, and China eased isolation conditions domestically. China covid cases have fallen to around 3,000, and, most significantly, the government has shortened post-infection isolation requirements. Overnight, US markets gorged themselves on lower oil prices as readily as they have convinced themselves that Ukraine-Russia talks will bear fruit recently. The

16-03-2022 05:53 GMT by Jeffrey Halley

Oil rebounds, gold slips

Oil rallies in Asia Oil prices slumped in overnight trading, Brent crude tumbling 6.85% to USD 98.70 a barrel, and WTI plummeting 7.0% to USD 95.10 a barrel. Oil markets continued to correct from the mayhem of last week, helped along by Iran nuclear deal hopes, fears over slower China growth, and persistent hopes of a Ukraine-Russia agreement to end the conflict. There is a lot of hope, and not much sign of reality in that reasoning, and oil prices have rallied once again in Asia.

16-03-2022 05:48 GMT by Jeffrey Halley

The US dollar remains firm

Dollar steady ahead of FOMC meeting Currency markets are refusing to buy into the Ukraine talks or a more dovish FOMC story, with the US dollar maintaining its recent gains versus the majors and continuing to grind higher versus key Asian currencies. The dollar index was almost unchanged at 99.01 overnight, although it traded in a choppy 40 point range, easing only slightly to 98.89 in Asia today.

16-03-2022 05:32 GMT by Jeffrey Halley

Crude oil’s the relief rally

Oil retreat continues Oil prices continued falling overnight, powering the equity relief rally on Wall Street which has extended into Asia this morning. New York Empire State Manufacturing Index fell into negative territory overnight, and US PPI came in ever so slightly under expectations.

16-03-2022 04:41 GMT by Jeffrey Halley

Oil and gold both pare losses after Putin says Ukraine not serious in finding acceptable solution

Covid, Ukraine weigh on oil The unwind of the oil trade is an easy one as a few reasons sent prices lower: China’s Covid surge has worsened as more lockdowns occur, expectations of a long Russia-Ukraine war has decreased as Eastern European leaders show unequivocal support for Ukraine’s independence, countries like India have bought Russian oil at a heavy discount, and manufacturing activity in the Empire State dropped to negative territory and the lowest levels since early in the pandemic. Su

15-03-2022 13:29 GMT by Edward Moya

Stocks rally on oil plunge and soft PPI report, airlines surge,bitcoin trapped

US stocks are getting a boost from a trifecta of reasons: economic and political pressure grow for a Russian ceasefire, oil prices plunge, and after both a softer-than-expected PPI report and a disappointing Empire survey supports the idea that the Fed won’t have to be aggressive with tightening policy over the next few meetings. The S&P 500 index was getting dangerously close to the lows seen at the initial stock market selloff when Russia invaded Ukraine just over two weeks ago.

15-03-2022 13:24 GMT by Edward Moya

UK100 - A big test above

Can it continue to push higher? It's been a highly volatile period in the markets, with equities coming under severe pressure as a result of high inflation, the Russian invasion of Ukraine, and the sanctions against it that followed. The UK100 has shown more resilience than its European peers during that time, in part as a result of the UK having fewer trade ties - particularly oil and gas - and due to the weight of commodity stocks within the index. Soaring commodity prices are naturally bene

15-03-2022 12:43 GMT by Craig Erlam

Euro rises, flirts with 1.10

The euro has gained ground for a second straight day and broke above the symbolic 1.10 line before retreating. German economic sentiment slides German ZEW Economic Sentiment took a plunge in March, falling from 54.3 to -39.3. The massive decline of 93.6 points was the sharpest on record.

15-03-2022 12:35 GMT by Kenneth Fisher

Cautiously optimistic

European equity markets have recovered most of their earlier losses but remain a little lower on the day. Stocks are coming off two positive sessions which probably contributed to the downside we saw earlier on despite there being no real negative developments in Ukraine. In fact, commodity prices have continued to decline today which could take the gale-force out of the coming headwinds for the global economy. This remains an incredibly headline-driven market which means investors will likely

15-03-2022 11:17 GMT by Craig Erlam

Aussie stems slide

The Australian dollar has finally managed to stem the bleeding on Tuesday, after two days of sharp losses. In the North American session, AUD/USD is trading at 0.7225, up 0.56% on the day. With the war continuing to rage in Ukraine, markets remain fragile and risk apprehension is high.

15-03-2022 10:13 GMT by Kenneth Fisher

Pound higher on strong UK job data

GBP/USD has rebounded on Tuesday after sharp employment numbers. The pound came within a whisker of the symbolic 1.30 line on Monday, dropping to a low of 1.3001. UK employment data outperforms The markets were forecasting good news from the UK employment report, and the data exceeded markets expectations.

15-03-2022 08:25 GMT by Kenneth Fisher

Oil prices slump in Asia

Oil down over Ukraine hopes, FOMC Oil prices slumped again overnight in New York and have done so again in Asia today. Growth concerns from the Ukraine-Russia stagflation wave, and FOMC hike this week, and hopes that progress will be made in Ukraine-Russia negotiations has seen Brent prices fall nearly USD 40 over the past few sessions.

15-03-2022 05:51 GMT by Jeffrey Halley

The US dollar rises versus Asia

Rising US yields boost US dollar The US dollar held steady versus most majors overnight, with reduced haven flows on Ukrainian hopes offset by rising US yields. The dollar index finished 0.04% lower at 99.09, before easing another 0.25% to 98.835 in Asia.

15-03-2022 05:40 GMT by Jeffrey Halley

Asia stock markets fall

Equities slip as US Treasury yields rise Asian stock markets are a sea of red today as higher yields ahead of the FOMC pushed US markets into the red. The S&P 500 fell by 0.76%, the Nasdaq slumped by 2.07%, while the Dow Jones finished unchanged.

15-03-2022 05:14 GMT by Jeffrey Halley

China data surprises, But can’t change sentiment

China has just released an excellent set of tier-1 data points, with Industrial Production (+7.50%), Retail Sales (+6.70%), and Fixed Asset Investment (+12.20%), blowing market expectations out of the water. Although the data covered both January and February, the data is all the more impressive as the government had imposed quite vigorous movement restrictions over the Chinese New Year.

15-03-2022 05:04 GMT by Jeffrey Halley

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