The United States: As expected, the Fed raised rates by 75 bps. However, the market interpreted Powell’s comments as being a bit on the dovish side, with rising hope that economic slowdown will force the Fed to pause rate hikes after September’s meeting.
Inflation expectations jumped in response to the supposedly “friendlier” Federal Reserve.
Emerging Markets: Is Pakistan headed for default? The sovereign credit default swap spread has blown out.
Commodities: Bloomberg’s broad commodity index is rebounding as the US dollar rally stalls.
Equities: Growth stocks underperform value and cyclical stocks when commodity prices are rising.
Options on VIX have been getting cheaper as investors give up bets on big shifts in volatility.
Global Developments: The World Economics SMI report points to a contraction in global business activity this month.
Food for Thought: Let’s take a look at global plastic waste by category.
Edited by Alexander Bowers
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