Equities sink as markets look towards Fed decision

While stocks are nervous as they await the Fed decision, oil prices are on the up again as the EU moves towards a ban on Russian imports.

Markets retreat ahead of Fed decision

“It is not difficult to work out why stocks are edging down this afternoon. The Fed’s rate hike move might be broadly priced in, but markets are clearly nervous that an even more hawkish FOMC might prompt a surge in volatility that could push indices back below last week’s lows. Even a dovish press conference might not help, since last week’s GDP contraction in the US has raised recession and stagflation concerns. Risk assets are still struggling to string together more than about two positive days in a row, and it seems unlikely that Powell can offer much in the way of good news.”

Oil price rise unnerves investors

“Those concerns about a recession won’t be helped by oil’s fresh gains today. After weeks of discussion, the EU is on a course to ban Russian oil imports, even if the bloc is not exactly in a hurry. The various ups and downs in oil in recent weeks disguise the fact that the big rally has mostly stalled, especially as demand concerns re China’s lockdown keep the bulls in check. However today’s news seems to promise another bigger move higher as the EU searches for fresh sources of supply.”