Hedge funds again aggressively bet on stock markets, developed economies are troubled by a strengthening dollar and futures are in the red today

New British Prime Minister Liz Truss has promised a big aid package to tackle skyrocketing energy bills. Hedge funds are reasserting themselves with aggressive short and long equity bets. Developed economies are being battered by the appreciation of the dollar to the highest levels in several decades, which until now has been a problem especially for emerging markets. European stock index futures are in the red today.

European stock index futures: Euro Stoxx 50 -0.9%, FTSE 100 -0.7% and DAX -0.8%.

Liz Truss has promised a big aid package to tackle the UK’s soaring energy bills. Her speech was dominated by the cost of living crisis. He takes over from Boris Johnson as the country faces brutal economic problems that could push millions of Britons into poverty this winter. Her team is expected to announce economic intervention on Thursday, which could see the government spend up to £200 billion over the next 18 months to curb energy prices, according to sources. If Truss does freeze energy bills for households and businesses, Britain’s inflation rate could already be peaking. The prime minister also appointed Kwasi Kwarteng as finance minister and James Cleverly as foreign minister.

Hedge funds are reasserting themselves with aggressive short and long equity bets. Short selling through macro products such as index futures increased when buying individual firms’ shares, according to the data. The same trends were also observed by . The data suggest that money managers are concerned about the direction of the broader market.

Developed economies are being battered by the appreciation of the dollar to the highest levels in several decades, which until now has been a problem especially for emerging markets. Fueled by the Fed’s most aggressive tightening cycle in more than a generation, a stronger dollar is pushing down rival currencies, raising the price of imported goods, tightening financial conditions and fueling inflation in other economies. That sharply increases pressure on central banks in Australia, Canada and New Zealand to raise interest rates as the energy crisis and spiraling consumer prices roil European economies. However, their ability to influence the strength of the dollar is limited.

Russia wants to buy millions of missiles and artillery shells from North Korea to use in the war against Ukraine. The move would violate a UN arms embargo that Russia voted for. Meanwhile, a week after Ukraine’s counteroffensive, the limited scope and objectives of the operation in the south are becoming clearer as both sides head into a long, hard winter. And Putin has a new battle on his hands – now he wants to win the global battle for “cultural supremacy”.

The article is in Czech

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