Calm atmosphere prevails ahead of FOMC decision

Stocks have held up well this afternoon, even with Putin’s escalation and an impending Fed rate hike.

Stocks rally despite looming Fed move

“The prospect of another bumper Fed rate hike hasn’t done much to deter investors today, and stocks have clawed back some of yesterday’s losses. But the rebounds of late have been weak, and are usually quickly undone by fresh declines. While today’s 75bps move might be a done deal, there is a very high chance that Powell will deliver another stinging rebuke to markets as he lays out the Fed’s plan to fight inflation even as the employment picture worsens.”

Putin’s sabre-rattling leaves markets unmoved, for now

“Vladimir Putin’s decision to go for partial mobilisation while waving his nuclear arsenal around is a serious development, but for now markets are too focused on what they hope the Fed might say. But it puts another level of support in for energy prices, signalling that recession risks will only keep on rising.”