The Federal Reserve might be close to the end of its tightening cycle after more than a year of at times aggressive rate revisions, as signs indicate that inflation is coming down.
Most third-quarter US earnings reports outdid expectations but serious headwinds are ahead given the strong dollar, China’s Covid-19 policy and Europe’s situation. Investor concern over inflation and higher interest rates will also put pressure on company valuations and stock prices.
China’s central bank says the yuan exchange rate is ‘basically stable’ and the economy is better positioned to deal with currency volatility and cross-border capital flows than at the start of the year.