- Stocks rose to a new high as traders reduced their expectations on the Fed's rate of tightening, while bond yields fell.
- The S&P 500 was led higher by technology and retail stocks, while the NASDAQ 100 extended its winning streak to a ninth straight day, the longest since December. A positive outlook from semiconductor giant Qualcomm contributed to evidence that the industry's squeeze is lessening. Short-maturity Treasury yields fell as global investors reviewed the future for monetary policy after the Bank of England defied expectations by leaving interest rates unchanged.
- The decision came after weeks of speculation that the BoE would be the first major central bank to boost borrowing costs since the pandemic began. It also occurred a day after Fed's Powell announced the beginning of a pullback in asset purchases while indicating policymakers may be patient with rises. Interest-rate futures contracts, which had priced in two quarter-point increases in 2022, pushed the second one into 2023.
- "We thought the amount of market pricing for Fed hikes really around the middle of next year was very full, and that should come down," said Mark Cabana, head of US rates strategy at Bank of America Global Research.
- Saudi oil output will top 10 million barrels per day for the first time since the pandemic, according to al Arabiya TV.
- OPEC+ decides to ease cuts by 400k in December - sources.
- JMMC supports no change to OPEC policy of easing cuts by 400k bpd - sources WTI weakened
- Traders push out the first 15bps BoE hike to February, and see 1% in September.
- BoE Gov. Bailey warns on the scale of rate wagers viewed in markets.
