The EU has eased its standoff with Moscow over energy supplies, with the latest indication that companies in the region can continue to buy Russian gas. The European Commission sent revised guidance to member states on Friday, an EU spokesman said on Monday. In the updated guidance, the EU said companies should clearly state that once a payment is made in euros or dollars, companies can consider themselves to have complied with their obligations. The EU sanctions "do not prevent operators from opening payment accounts in specific currencies at designated banks under gaseous gas supply contracts, and operators should clearly state that they plan to meet existing contractual obligations and consider their payment obligations to have been met," the people said. It is done by paying in euros or dollars, which is not contrary to the existing contract.” The guidelines, which do not prevent companies from opening accounts with Gazprom and would allow them to buy gas from Russia while complying with EU sanctions, do not offer a solution to Russia's request to open accounts in rubles. Russian President Vladimir Putin said that opening a ruble account is a prerequisite for completing the payment. The guidance is in line with a report by Bloomberg News on Saturday.

New York Federal Reserve Bank President John Williams said financial market liquidity is expected to deteriorate given the tightening of monetary policy and the resulting rise in volatility. "There's a lot of uncertainty in the global environment, a lot of events," Williams said on the sidelines of the Mortgage Bankers Association conference in New York on Monday. "We're also seeing clear trends that our actions are driving monetary policy toward a more normal The direction of interest rates, I think some of the volatility is actually a reflection of the Treasury market digesting some information." He said signs of deterioration in U.S. Treasury market liquidity, such as widening bid-ask spreads, “are more or less consistent with rising market volatility.” “I don’t see signs of a dysfunctional U.S. Treasury market.”

According to a senior Biden administration official, the U.S. plans to increase penalties for non-compliance with export controls on products related to national security — controls that have recently targeted countries such as Russia and China. Potential changes include higher fines for offending companies, earlier public disclosure of alleged violations, and more requirements for companies to admit wrongdoing when they seek pre-court settlements. Those plans were outlined in a speech Monday by Matthew S. Axelrod, Assistant Secretary of Commerce for Bureau of Industry and Security Export Enforcement. After Russia invaded Ukraine, export controls played a growing role in U.S. policy. Before the war broke out, the United States had spent months negotiating rules with allies to prevent Russia from obtaining military technology and materials. The Biden administration has also used export controls imposed by the previous administration to restrict the export of cutting-edge technology to China, its biggest geopolitical rival, for military use, or for surveillance and human rights abuses.

Morgan Stanley strategists said the recent rally in U.S. stocks was just a bear market rally with declines ahead. "With valuations now more attractive, stocks severely oversold, and interest rates likely to stabilize below 3%, stocks appear to have embarked on another substantial bear market rally," Morgan Stanley strategists led by Michael Wilson said on Monday. wrote in a report. “After that, we believe there will be more declines.” The S&P 500 rallied on Friday as valuations became more attractive after a near 20% decline from its highs. But the benchmark still fell for a sixth straight week, the longest stretch since 2011, as investors worried that soaring inflation and central bank tightening would trigger a sharp slowdown.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!