September 22, 2022
Stock Bulls Reluctantly Fold on Fed’s Grim Economic Message
It took longer than it should, but stock traders finally heeded the Federal Reserve’s latest message: The inflation battle will cause real economic pain.
After rising as much as 1.3% when the Fed delivered its third straight 75-basis point hike, the S&P 500 plunged into the close as Jerome Powell made it crystal clear that the central bank is going to keep raising rates sharply — until officials see signs that price pressures are easing. That’s a process that won’t be “painless” for the labor and housing markets, the Fed chief warned.
EU Flip-Flop on Russian Coal Sanctions Brings Doubts for Oil
A U-turn by the European Union that’s allowing Russian coal to move more freely has led to uncertainty in insurance and shipping markets about whether a key part of the bloc’s oil sanctions could also be watered down.
The EU published new guidance this week saying that the transfer of coal and fertilizer to countries outside the bloc is now allowed, citing energy security concerns. That followed an intervention in August that surprised insurers and shipowners because it had indicated a full prohibition on Russian coal shipments.
Japan Intervenes to Support Yen for the First Time Since 1998
Japan intervened to support the yen for the first time since 1998, seeking to stem a 20% decline against the dollar this year amid a widening policy divergence with the US.
The yen rose as much as 2.3% against the dollar, pulling back sharply from the lows of the day when it had breached a key psychological level of 145, as top currency official Masato Kanda said the government was taking “bold action.”
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