As I do every week, here's what matters in the financial news.
For my trading-focused analysis, watch this:
The Fed's decision and the situation in the Middle East
On Wednesday 18 March, the US central bank decided to leave its policy rates unchanged.
The FOMC's members don't seem ready to cut them any time soon, especially given the geopolitical situation and the announcement of more US troops heading to the Middle East.
Meanwhile, Iranian attacks on oil facilities in the region obviously aren't helping.
I'll say it again: prices at the pump probably haven't finished rising.
Global consequences
The war in the Middle East, rising oil prices and the risk of inflation picking up again are affecting more than just energy.
You can see it in the major US, European and Asian indices:
- CAC 40 down 9.79% over a month
- S&P 500 down 4.84% over a month
- Nasdaq 100 down 3.28% over a month
- Nikkei 225 down 6.89% over a month
And crypto in all this?
Surprisingly, given how unstable things are, prices are holding up a little better than I would have expected.
As for gold
Gold has fallen sharply over the past few days.
The benchmark COMEX gold contract, for example, is down 14.04% over a month.
The prospect of rates staying higher for longer also makes US government bonds more attractive, particularly benchmarks such as the 10-year, with their high yields.
