Tuesday's Market Minute: Five Focal Points This Week

We begin the week with the focus “across the pond” as the U.K. has a new Prime Minister, Liz Truss, who has stepped in for the outgoing Boris Johnson. She comes with an energy plan to freeze prices and deal with what many call an “inevitable” energy crisis. It'll be key to watch if the new Prime Minister can build confidence and slow the decline in the British pound, which last week traded below 1.15 to March 2020 lows. 

The energy crisis Europe is dealing with a direct result of the war on Ukraine, as Russia has now cut off supplies through the Nord Stream pipeline. OPEC+ recently announced plans to cut production by 100K barrels a day to bring markets back into balance. Crude began the U.S. trading week below $90 in the WTI, with the Brent at $93. 

In terms of economic data this week, the focus will be on Redbook for insight into the Fed’s plan to raise rates later this month. This week, we also have the ISM Services Index, weekly Jobless Claims, Fed chair Jerome Powell set to speak Thursday, and a handful of regional Fed speakers throughout the week. A handful of closely-watched companies are also reporting quarterly results, including NIO NIO, Coupa COUP, GameStop GME, Casey’s General Stores CASY, American Eagle AEO, DocuSign DOCU, RH RH, Zscaler ZS, and Kroger KR to close the week out.

Lastly, we just heard from Reserve Bank of Australia; they raised rates by 50bps as expected, bringing the cash rate to 2.35%. This week, we’ll hear from the European Central Bank—there’s been a fair amount of speculation headed into the meeting as to whether we’ll see a 75bps hike from the ECB Thursday. 

Looks like another busy holiday-shortened week ahead!

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