Markets await Fed rate decision
Today's news headlines:
‘Europe gas extends scorching rally as Russia supply set to slump’. After just one week, gas supplies from the Nord Stream pipeline are set to fall to 20% of capacity as Russia ramps up the pressure on Europe. Dutch TTF Natural Gas futures have climbed 10% today as European nations continue to source alternative supplies heading into what looks like a challenging winter. The strategy is to stockpile in the coming months, with the European Union urging countries to meet its 15% gas cut target. (Bloomberg)
‘More than 100,000 British workers are off sick with long Covid’. It’s been a year since all Coronavirus restrictions in the UK were lifted, as the virus continues to put stress on the labour market. Around 100,000 workers are estimated to be off work, suffering the effects of long Covid, which has created downward pressure on earnings when the cost of living has increased significantly. Some workers are forced to rely on statutory sick pay of £99.35 per week, with absence times lasting for as long as six months. (Bloomberg)
Asian markets fell overnight, with the Hang Seng losing 1.40%, and European markets followed suit, opening lower this morning. US equity futures point higher ahead of the Federal Reserve meeting later today when the US central bank is expected to hike interest rates by 75 basis points. The US Dollar Index trades flat while Sovereign bond yields rise.
Australian Consumer Price Index QoQ (Q2, 2022): 1.8% (est. 1.9%)
German GfK Consumer Climate (Aug): -30.6 (est. -28.9)
US Durable and Core Durable Goods Orders MoM (Jun): 1:30PM
US Pending Home Sales MoM (Jun): 3:00PM
US Federal Reserve interest rate decision: 7:00PM
GBP/USD – 1.2051
GBP/EUR – 1.1878
EUR/USD – 1.0146
USD/CAD – 1.2858
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