- We are seeing a return to falling indices on Wall Street and around the world after hawkish comments from Fed members
- Williams on Monday indicated that rates are not yet in a restrictive region, Evans points to bringing inflation down through making policy more restrictive
- Kashkari, considered the most dovish policymaker, indicates that the Fed is still a long way from bringing inflation down, while Mester reports that current inflation is at too high an acceptable level
- Fed's Evans: We Have Further To Go On Rate Hikes, Headed Towards 4.5%-4.75%, Likely By Springtime, balance sheet will be completely reduced within three years
- According to financial institutions, the Fed is not yet ready to announce a pivot, although labor market data may prompt it to do so
- Thanks to this stance, the dollar is returning to strength. EURUSD is falling around 0.98 and it was not uncommon in the G10 to see a strengthening of the dollar against other currencies in the order of 1%.
- Today's data on jobless claims showed that a slowdown may have begun. Claims came in at 219,000 against the previous level of 190,000.
- Oil tried to reduce the gains somewhat after yesterday's surprise move by OPEC+, which decided to cut production by 2 million barrels per day, although realistically the cut may be about half of that
- Biden considers various options on how to increase oil supply with latest OPEC+ decision
- ECB minutes weakened the euro, as they may suggest that further hikes will be smaller than the last one (75 bps)
- Gas inventories rose by 129 billion cubic feet, but US gas prices rose moderately today
- Talks between Elon Musk and Twitter are stuck in part over musk’s statement that his offer is now contingent on receiving $13 billion in debt financing - people familiar with the matter.
- A strong dollar, with yields rising above 3.8%, is pushing gold back closer to the $1,700 per ounce area. Silver is trading at $20.5 per ounce
- Indices on Wall Street lost most of their earlier losses, although they lost nearly 1% after the European session ended. Indexes in Europe lost mostly less than 1%.
- Despite the strength of the dollar, Bitcoin was able to return above $20,000 today.
Three markets to watch next week (09.02.2026)
US100 gains after the UoM report🗽Nvidia surges 5%
Market wrap: European indices attempt a rebound after Wall Street’s record selloff 🔨
📈Wall Street rebounds, VIX slips 5% 🗽What does US earnings season show us?