The Fed is the last hope for a bull market? | What will the week bring?

Last week's rate hike European Central Bank by 75 bp. it was in line with previous market forecasts. However, the reaction of investors to this event turned out to be… puzzling. Last Thursday, the euro was depreciating and the ECB announced further increases and a return to talks on quantitative tightening in December. This week, however, the attention of market participants is focused on the United States. Despite the fact that the largest technology companies posted weaker quarterly results, the main US indices ended last week with gains. Markets await the Fed's decision on Wednesday, expecting another interest rate hike by 75 bp. However, it is not Wednesday's decision, but the announcement of the next ones, which attracts everyone's attention.

The market is counting on the Fed

The market hopes to soften the tone Federal Reserve, although the Fed's determinants (situation in the labor market and inflation) remain strong. Therefore, apart from the Fed meeting, the Friday publication will be another key market event NFP report. However, it should be remembered that even if the data from the US labor market turns out to be weak, the end of the rate hikes cycle does not mean an automatic transition to the rate cut cycle. Meanwhile, LNG transport rates are rising to astronomical levels due to the lack of available ships. What does this mean for the natural gas market?

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of this week - the Fed as the last hope for a bull market?

In today's video:

• Did the market want to see the dovish ECB?
• What to expect from the Fed meeting?
• Is this the end of gas growth?

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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