This was to be the week of the FED, with the two-day meeting starting tomorrow to dominate investor attention since the beginning of the month, as another interest rate cut and probably a more dovish return to mindset is expected. Specially after the last meeting, when the board members were more neutral than expected.
But with the terrorist attack on the world’s largest crude processing unit, which reduces world production by 5%, the focus today is on oil, with prices rising about 20% at the very opening, a new record daily gain. For now the movement is a bit more contained, around 10%, however the short-term uptrend could continue, because the restriction of production now has the political rhetoric about the accountability of the act, with Trump saying he is prepared to intervene, while Iran denies involvement and declares that it is prepared for open war. In perspective therefore a week with many emotions.
