Danilo Maroni shows us the day ahead.

Wall Street seems to be doing business as usual. In a sign of confidence, the Federal Reserve can easily turn off stimulative taps with minimal damage to the economy.

It was not shocking to see the U.S. inflation headline print reach 7% on Wednesday. This is despite the fact that the risks facing the macro cycle from the next rate-hike round in March are likely to continue.

With the retail crowd returning to purchase the dip, the Nasdaq has recovered more than half the losses from this year. The megacaps are safer.

Following an initial upheaval, TINA, which asserts that the equity market is the only viable option, made a comeback. The yields on 10-year U.S. Treasury bonds are now down by more than 5 basis point from their peak at 1.8%.

However, the day ahead may be more dull.

After jumping by 3% Monday’s lows and futures suggest a slight fall across European equity markets, as well as in the U.S. in the latter stages. World stocks remained flat in Asian trading hours.

China’s short-term cash rates reached four-month records due to growing seasonal cash demand. The market now focuses on whether or not China’s central bank will lower its policy rates in order to offset the slowdown.

After a dramatic recovery which saw oil prices rise 30% to $85 per barrel, this week’s pre-Omicron highs are now set to end.

Although the data calendar may be sparse, there are plenty of speakers from central banks to keep your attention. Congress is hosting a hearing on the nomination of Fed Governor Lael brainard as her deputy chairman.

Graphic: US CPI, https://fingfx.thomsonreuters.com/gfx/mkt/xmvjobewgpr/Morning%20bid.PNG Key developments that should provide more direction to markets on Thursday: * Genting Hong Kong shares plunged 56% after the cruiseoperator warned of a significant gap in its liquidity resources * Brexit and NI protocol talks between UK and Europeancommission * Meeting of Organization for Security and Co-operation inEurope * Fed: Richmond President Thomas Barkin; Board Governor LaelBrainard; Philadelphia President Patrick Harker; ChicagoPresident Charles Evans * ECB: Vice President Luis de Guindos; Board Member PenttiHakkarainen * ECB monthly bulletin * Emerging Markets: Serbia central bank meeting * US PPI/initial jobless/30-year auction * US earnings: Delta Airlines (NYSE:)