Following major protests, China has eased some of its zero-COVID policies while oil prices hit their lowest level since December 2021.
The gulf between short- and long-term US borrowing costs has reached its widest point since 1981, in a sign investors expect the Federal Reserve to stay the course in its battle to tame inflation, even as recession worries mount. The pattern, known as a yield curve “inversion”, has preceded every US economic downturn of the past 50 years. While the data paint an upbeat picture of the state of the economy, some investors are worried that it will also encourage the Fed to keep pushing interest rates higher next year, after taking them from near zero to a range of 3.75 to 4 per cent so far in 2022.
One big reason oil prices have declined: Europe’s ban on Russian oil shipments included a mechanism for it to flow elsewhere.