At today’s meeting, the FOMC will likely officially announce the reduction of the QE program

Today, traders’ attention is focused on the Fed meeting. It is expected that the Federal Reserve will announce the cutting of its monthly bond purchase program. However, even if it happens, traders should not expect any significant shocks on the market because, firstly, it has been already priced in. Secondly, the “cut” will be gradual, most likely 10 billion a month. In other words, they will complete the tapering program and rest the interest rate by the summer fall next year. Also, a lot will depend on the dynamics of inflation. As many analysts expect, if inflation continues to rise rapidly, the Fed could raise interest rates sooner. If the central bank talks about a faster reduction (some Fed members favor a quicker cut), it could have a big impact on the market.

The head of the World Medical Association, Frank Ulrich Montgomery, wants to revaccinate the population every six months.

The US has approved the use of the Pfizer vaccine for children 5 to 11 years old. In New York, about 9,000 unvaccinated officials were placed on unpaid vacation. Canada suspended 3,300 unvaccinated doctors without pay. Air Canada suspended more than 800 employees due to refusing to vaccinate.

Last days Biden held a meeting with G-20 leaders that focused on supply chain issues. According to a White House report on the summit, the United States, the European Union, and 14 other countries agreed to promote the expansion of international cooperation in connection with short-term difficulties in the supply chain.

Another important international event attracting the attention of global markets is the climate summit in Glasgow, Scotland. The meeting is held under the auspices of the United Nations and is perceived as a crucial step for world leaders in taking action to reduce CO2 emissions. However, analysts do not expect countries to adopt highly ambitious targets at the end of the summit.

Several oil traders said that the $100 oil price is fast approaching reality as the demand exceeds the proposal. Climate change has caused a slowdown in investment in new sources, which threatens the depletion of reserves. Futures quotes for oil rose sharply due to the worldwide spike in gas and coal prices caused by the global energy crisis. Iran plans to resume exporting oil products within two weeks.

Gas prices in Europe jumped over 2% on news of Gazprom’s refusal to book additional gas transit capacity via Ukraine and Poland.

The main Asian indices are trading in the red zone today. The only exception is the Australian index. Investors are cautious ahead of the Fed meeting today, and the main issue is not the reduction of the QE program but to make it clear when the Fed will start to raise interest rates.

China has unexpectedly increased its injection of short-term cash into the banking system fivefold because banks also need to postpone cash to buy bonds so that creditors can pay off the record 1 trillion yuan in medium-term loans.