Daily Alert – Thursday 17th February 2022: Dovish Fed puts a dampener on markets

Mark NugentDaily Alert, Feb 2022

Daily Alert – Thursday 17th February 2022: Dovish Fed puts a dampener on markets

Good morning.

Yesterday’s FOMC Meeting Minutes (from the US Fed) were perceived as being anticlimactic and slightly dovish. Expectations for the March rate hike have fallen back to 25-basis points from the prior 50-basis points.

Overall, risk sentiment was indecisive.

Over at the Ukrainian border, the US say they see no sign of a Russian troop withdrawal.

Equities are directionless.

I do notice that today WTI (oil) is making a comeback after falling for two days. It is moving up nicely from support. OPEC is having difficulty delivering on their desire to pump more oil. Demand is growing. Institutions are forecasting USD100/bbl. The fundamentals say buy. I’ll take another look later tonight.

We’ll be back on Monday.

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