- OPEC+ agrees to cut output by 100k bpd
- EU's Borrell says he's less confident today on an Iran nuclear deal closing
- BOE's Mann: Drift in medium-term inflation expectations is already apparent
- BOE's Mann: Whether rates should rise by 75 bps is an important question
- Union support: A sign of a coming era of higher wage inflation?
- Russia's Novak: We decided to revise quotas given a slide in GDP
- UK PM Truss: I will deliver a bold plan to cut taxes and grow the economy
Markets:
- US and Canada closed for holiday
- S&P 500 futures up 12 points
- WTI crude up $1.95 to $88.82
- TTF gas up €36 to €245
- Gold down $4 to $1707
- GBP leads, NZD lags
The holiday cooled market volatility on what could have been a rocky day. European natural gas surged nearly 30% at one point but the market is skittish as the EU floats various trading bans and plans ahead of a meeting of finance ministers on Friday.
The euro suffered with the Nord Stream cutoff but both it and the pound rebounded late in the day. In the UK, Truss won the vote to be PM, as expected. That might have led to something of a relief rally in GBP but she will face some tough choices right from Day 1.
Oil was in focus and rallied ahead of the OPEC+ announcement on murmurs of a cut. It failed to hold onto all its gains though, falling $1.50 from the best levels. USD/CAD did little with both countries on vacation while NZD slumped in Asia then managed to recoup most of the losses.
A big week of central bank decisions kicks off now with the RBA decision. Aside from the details, what I'll be watching for is more talk about the new global ethos around tightening despite economic risks in order to anchor inflation expectations.
