Risk Sentiment Improves, But To Be Short-Lived
NDTV
Global risk sentiment improved early Thursday after the Fed indicated rates might rise, but the Russia-Ukraine war is likely to sour investors' mood.
Global risk sentiment improved late on Wednesday and into early Thursday as US Federal Reserve Chair indicated rates might rise, but less aggressively due to the Russia-Ukraine war, which will likely cap those gains.
Elevated crude oil prices, which flew past $110, kept investors cautious tracking the Russia-Ukraine war, pushing for the US dollar to be well bid.
Traders said with oil marketing companies yet to on-pass the recent increases in global crude oil prices to consumers, risks of inflation surging in coming months has risen significantly.
That is an ominous sign for already-high global inflation.