- Energy Crisis Worsens, Fleet of Ships Carrying Diesel Headed for Europe.
- Key Rhine River Waypoint Expected to Rise Bringing a Sliver of Relief.
- Fed Minutes[1] Nuanced Messaging Fails to InspireRisk-On Sentiment.
DAX 40[2]: Stages Modest Bounce as Fed’s Nuanced Message Fails to Inspire Equity Rally
The DAX[3] staged a modest bounce in European trade as we pushed higher following on from yesterday’s 360 odd point sell-off. Overall the market sentiment appeared mixed in European trade, as markets digested the FOMC minutes[4] released by the US Federal Reserve[5] yesterday. The key takeaways are the Fed stating a continued belief that rate hikes will continue as they fear inflationary pressures becoming entrenched. That said, they did flag an eventual slowdown in the pace of hikes, but not a switch to cuts in 2023 that had been the widely held belief prior to the minutes’ release.
For all market-moving economic releases and events, see the DailyFX Calendar[6]
As the European energy crisis worsens, a fleet of ships carrying diesel is heading for European markets. Five ships transporting close to 3 million barrels are poised to move from Asia to Europe so far in August, preliminary data from Vortexa show. That’s the most in five months on a barrel-per-day basis, with shipments from the Middle East also expected to expand.
The New York Session: Forex Trading Tips[7]
To assist German consumers Chancellor Olaf Scholtz announced a temporary cut to sales taxes on natural gas[8] to 7% from 19% to try to ease the burden on households and companies. With the new levy incoming in October discussed yesterday[9], this measure will be welcomed. According to Chancellor Schultz “With this step, we are reducing
