This week and the rest of the month aren’t expected to bring big news. Market feeling is mixed. The bear market rally seems to be running out of energy, and another descend may occur from September onwards, if recession is confirmed and if the FED signals more tightening.
EU Inflation
Source: CNN
Annual inflation in the European Union jumped to 9.6% in June. It reached 8.6% for the 19 countries that use the euro.
To cap price increases, the European Central Bank is due to start raising interest rates on Thursday for the first time since 2011. But it faces an uphill battle to get the situation under control.
The central bank lags peers like the Federal Reserve, which started hiking months ago. Interest rates in Europe have been negative since 2014, which means it’s further behind. And, if a shortage of energy tips the region into recession, the central bank could be forced to abruptly stop hiking rates, hampering its ability to keep fighting inflation.
China Tries to Avoid a Financial Crisis
Source: Seeking Alpha
China lowered two key lending rates and injected more cash into its economy Monday as it looks to keep stimulating the economy. The country remains the global monetary policy outlier, with the rest of the major economies tightening in an effort to tame inflation.
The People’s Bank of China cut its one-year lending facility rate by 10 basis points to 2.75% and cut the seven-day lending rate the same amount to 2%. The PBOC added 2 billion yuan through seven-day reverse repos.
Recessions and Social Unrest – A Few Videos
Video: The REAL cause of all recessions (that nobody talks about)
Channel: Slidebean
Video: Sri Lanka’s COLLAPSE Is FAR Worse Than You Think, Bankrupt | Global financial crisis is approaching
Channel: Business Basics
Video: Is the Great Reset Happening? – Robert Kiyosaki @Mark Moss
Channel: The Rich Dad Channel
Economy and Recession
Video: Cathie Wood on the Fed, Economy, Coinbase, Tesla
Channel: Bloomberg Markets and Finance
