LiveWire

Oil is headed for its longest decline of weekly losses this year as officials around the world have stepped up the speed at which they are tightening financial conditions, in turn darkening the energy demand outlook. WTI is set for its fourth consecutive weekly loss and its first quarterly loss in more than two years. While USD78.8 per barrel could hold, WTI could be headed to re-test its support at USD72 or below. A halt to rising Treasury yields or a change of market momentum is likely needed to improve investors' mood. 

Risk assets are under pressure this morning as investors weigh the implications of rather very hawkish central banks from developed economies. UK GfK September Consumer Confidence fell to -49, the lowest in records. And German PMIs too show deterioration, falling below expectations and forecasts. EU (PMIs) numbers are expected to come out soon.

The Bank of England raised rates by 0.5% for the second time consecutively. Officials called the BOE to join global peers in raising rates even faster to fight inflation. Rates are now 2.25%, with rates rising for the 7th consecutive time in a row, with officials voting to tighten policy at every meeting since December. 

The Swiss franc dropped and USDCHF broke key resistance level as the Swiss National Bank raised rates by 75 basis points, in line with the 75bps forecasted by markets. 

The Fed raises rates by 75 basis points and sees another 125 bps room until the end of the year. Moreover, the committee sees the terminal rate for this hiking cycle at 4.6%, up from 3.8% in the June dot plot. The dollar is roaring, while stocks and bonds are down following the release.