Marketmind: Arrested According to Reuters

© Reuters. FILE PHOTO: Customers at the Edeka grocery store buy pasta, as the spread of coronavirus disease (COVID-19) continues in Duesseldorf, Germany, April 29, 2020. REUTERS/Wolfgang Rattay/ File Photo

A look into the future in European and global markets from Anshuman Daga

The arrest of former FTX CEO Sam Bankman-Fried in the Bahamas by order of US prosecutors, just a month after the crypto exchange filed for bankruptcy, is making headlines in the media. day.

And for financial markets that are on hold, US inflation data late Tuesday is shaping up as a key event, perhaps more important to the outlook than decisive. interest rates tomorrow by the Federal Reserve.

Asian stocks were in a wait-and-see mood on Tuesday while the dollar, buoyed by high interest rate expectations and rising, held firm.

In Europe, markets will focus on economic sentiment data from Germany, the region’s largest economy, which will publish the ZEW survey. Inflation data will also be released in Germany.

Investors generally remain wary of the risk of rising borrowing costs hurting economies, although central banks are starting to slow the pace of rate hikes.

Hyperinflation has forced advanced economies to raise borrowing costs by a total of 25.15 percentage points this cycle, the highest level in decades.

Price growth is starting to slow in the United States but investors need more evidence to underline that trend, which could limit any policy shocks from the Fed.

Economists polled by Reuters expect US core inflation to stabilize at 0.3% month-on-month but the annual pace will be moderate, given the price headlines 7.3% higher than a year earlier.

Big volatility on CPI days

The latest survey by the New York Federal Reserve shows that Americans expect inflationary pressures to ease over the next few years even as they expect their incomes to rise.

Despite double-digit inflation and rising energy costs, travel demand remains strong, with TUI, the world’s largest travel agency, setting strong business targets for the summer of 2023.

Meanwhile, England National border (LON:) canceled the backup notice for two coal units, hours after making the request, as a cold spell enveloped the country but high nuclear output and wind speeds reduce the possibility of a shortage. energy.

Key developments that could affect the market on Tuesday:

Economic data: UK labor market October, German inflation last November, German ZEW survey December

Event: Fed starts meeting for 2 days, BoE releases Financial Stability Report

US data: November inflation

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