The Stock Market is Concerned About Apossible Fed Announcement And The Situation in Ukraine

The US central bank will meet exceptionally on Monday. The market speculates on the strategy it will adopt. Tension remains high in Ukraine.

The USA does not confirm the possibility of an invasion of Ukraine on Wednesday  U.S. Government WorksThe US does not confirm the possibility of an invasion of Ukraine on Wednesday.

For a surprise, it’s a surprise! At the end of the week, the American Federal Reserve (Fed) announced, on its website, the holding of a meeting of its board of governors on Monday February 14. While this board is made up exclusively of members of the monetary policy committee, not all FOMC members are on the board. On this Valentine’s Day, what gift is she preparing for the financial markets? Should we expect a shocking, early announcement on interest rates? On the stock market, speculation went well on Friday, pushing down the equity markets. On the eve of the weekend, the probability of a rise in the cost of money by 50 basis points next month has climbed to 90% and to almost 95% for that of a rise of at least 100 basis points by the end of the first half.

An increase in the cost of money before the March 15-16 meeting would imply that the Fed would end its asset purchase program (very) quickly, a risk for which the market is not prepared. The announcement of the surprise meeting came hours after the US inflation figure was released in January. It reached 7.5% over one year, a level not seen since February 1982 and higher than expected by economists. Excluding energy and food, the most volatile components, inflation rose to 6%.

Washington warns of imminent intervention in Ukraine
Over the weekend, tension escalated further in Ukraine. The Russian Foreign Ministry on Friday accused Westerners of spearheading disinformation about Ukraine in order to mask their aggressive actions. White House national security adviser Jake Sullivan said Russia was now in a position to launch a major offensive and that it could start with airstrikes, which would make it difficult to leave. ‘Ukraine. He advised Americans still in Ukraine to leave the country within 48 hours. Germany, for its part, has called on its nationals to leave the country.

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The Stock Market is Concerned About Apossible Fed Announcement And The Situation in Ukraine - /10

Summary

The US central bank will meet exceptionally on Monday. The market speculates on the strategy it will adopt. Tension remains high in Ukraine. On the values ​​side, it will be necessary to monitor the annual results of Capgemini and Michelin.

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