Global markets are currently reeling from the first-ever launch of a British-made cruise missile at a military target in Russia, marking a new phase in the protracted conflict.
The move has heightened concerns about regional stability and its implications for global risk sentiment.
On the economic front, the post-election US landscape is taking shape with significant changes in the macroeconomic environment.
Boston Federal Reserve Bank President Susan Collins has voiced the need for further rate cuts, but warned that they should not be done too hastily or too slowly.
Her views reflect the Fed’s efforts to find a balance between supporting the economy and managing inflation risks.
Market expectations for a December rate cut remain subdued, with swap prices suggesting a less than 50% chance of further easing this year.
Traders remain cautious, awaiting clearer guidance from the Fed’s statement and upcoming economic data.
Meanwhile, attention is focused on President-elect Donald Trump’s nominations, particularly for Treasury Secretary.
Names mentioned include former Federal Reserve Governor Kevin Warsh and Apollo Global Management CEO Marc Rowan.
The selection has the potential to signal the new administration’s stance on fiscal and economic policy, adding a layer of intrigue to markets already grappling with a complex landscape.
As traders assess the interplay between geopolitical tensions, the evolution of monetary policy, and fiscal leadership in the US, volatility is expected to continue through the end of the year.
