We’re very much in looking glass territory again with investors desperate for the Fed to ease up on rate hikes and therefore taking any bit of good news about the economy as bad news because it will delay the longed-for pivot.
AJ Bell investment director Russ Mould said: “Better-than-expected figures from the US services sector, combined with some profit taking after a strong run, resulted in losses across the Atlantic overnight and the negativity permeated into Asian shares with some of the optimism about a loosening of Chinese restrictions also beginning to fade.
“The next key US releases come on Friday with producer prices data and a reading of consumer sentiment. Next Wednesday is decision day on US rates and the Fed’s actions could help set the tone for the tail end of 2022 and first weeks of 2023.
“A cold snap in Europe is putting upward pressure on gas prices again after a mild autumn had helped fill storage tanks. Further increases in energy bills for individuals and businesses could give investors and politicians another headache they could well do without as we head towards Christmas.”
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