Done job

The Fed left its benchmark rate unchanged yesterday indicating that the recent rise in longer Term Treasury yields and the overall economic situation hints towards an end of its tightening cycle. Meanwhile, inflation in the Eurozone falls to a 2 year low in October. European economies are shrinking now with a Eurozone PMI in recession territory since 3 months. Core inflation in Europe remains more sticky but is also starting to recede. Our assumption is that the ECB has also arrived at the end of its rate hike cycle.