Newspapers and other media are full of news about the Nord Stream, through which gas from Russia was supplied to Europe via an extended sea route, simultaneous ruptures occurred, jeopardizing their work.
A situation that worsens the prospects of an already particularly problematic winter for Europe, against the background of difficulties with gas supplies. A situation that obviously affected one of the many fragile nerves of the markets in recent days, and the sell-off affected not only the cryptocurrency markets, but also the stock market (just look at the US indices, although they have since closed with a slight recovery) and the main European indices.
The situation is still serious, still nervous, and it needs to be assessed day by day, and the way out of this pit, into which the European economy and the world economy as a whole seem to have slipped, is still very far away.
What would be the best solution in this situation?
The situation is as we have been describing it for several weeks now, and, unfortunately, nothing has changed in terms of the canons that should be taken into account when making forecasts.
- The Fed will continue its policy of raising rates
The fact that the US central bank’s macs unequivocally repeated the day before yesterday that they are more concerned that inflation will become structural than the possibility of slowing growth or its complete weakening.
The good news here is that the markets seem to have already taken note of this news, and if there is no more tightening than expected (everyone thinks a 125bp rate hike is likely before the end of the year), then there should be no shocks in this regard.
- China is stimulating, but how long will it be able to do this?
While most central banks are tightening the handbrake until the last click, China continues to activate stimulus plans and is trying to keep growth afloat with central bank intervention.
A balanced decision? Probably, yes, including because in a few weeks there will be a party congress, on which the coming years of China will depend.
- The UK Issue
In the UK, too, things are not as good as they seem, and the pound sterling seems to follow the fall of the euro, in a situation that few expected, and which opens a new front for the markets. In the hope that it will be the last.