equities in europe will likely track global losses as inflation pressures mount in asia all major benchmarks were in the red the dollar was a touch weaker shortend treasury yields continued to rise oil prices were slightly firmer and gold extended its retreat european stocks face heavy opening losses on friday with investors considering the implications of a likely federal reserve interest rate rise next week on wall street big tech led broad declines on thursday in an erratic session as investors looked to the next fed meeting and the odds it will have to take tougher action to combat inflation than many had hoped what the fed is doing is they realized that dropping rates to zero created so many distortions across the market that they want to go the other way exencial wealth advisors said theyre going to want to err on tootight side rather than tooloose side because they know they had a big hand in causing this inflation forex markets were calm following big swings earlier this week with the dollar little changed against a basket of currencies however bank of america sees more forex volatility ahead the august cpi surprise was likely not a oneoff shock and should contribute to more fx volatility for rest of the month as investors reprice central bank rate hike decisions the bank said the higher for longer view has been endorsed by several fed speakers recently and the upside surprise to us inflation reaffirms this notion it sees the dollar gradually weakening next year as the fed starts becoming more concerned about growth than inflation treasury yields were mixed in asia with the continued rise in the 2year rate outpacing that of the 10year yield leading to a more deeply inverted treasury curve thats seen as a worrisome sign of the outlook beyond the impact on the us economy investors remain cautious on the demand destruction linked to the tightening by all the major global central banks with the exception of the bank of japan bmo capital markets said given this backdrop were anticipating the runup to the fomc decision and the kneejerk price action will be defining for the direction of us rates during the fourth quarter with the looming prospect of a 100basis point interest rate increase next week the oneyear treasury yield continues to hit new highs since it was reintroduced in june 2008 tradeweb said the oneyear is taking turns with the twoyear as the highest yield in the curve after spending much of the pandemic era low or even near 0  as tradeweb noted the oneyear was recently at 4021 and the twoyear at 3901 serbia has started discussions with the imf to receive financial assistance as the country faces soaring borrowing costs on international bond markets crudeoil futures edged higher in asian trade reversing earlier losses in a likely technical rebound also markets appear increasingly skeptical about prospects for immediate resolution to the iran nuclear deal td securities said citing its own inhouse indicators this suggests a resurgence in energy supply risks however fitch said demand concerns due to expectations the fed will deliver another big interestrate increase next week continue to weigh on oil prices an ongoing economic slowdown and fears of recession in key markets including the us and the eu continues to weigh heavily on prices undercutting the outlook for demand fitch said the oil market remains fundamentally tight and reckons supply could tighten further after the eu imposes its ban on imports of seaborne russian crude on dec 5 gold futures were weaker again having settled at a more than 2year low on thursday as bets for more fed rate hikes fueled dollar strength and a rise in yields next week could see gold drift even lower if the fed hikes the fed funds rate by 100bpsmarket pricing is currently around 81bps cba said it said gold is likely to fall to an average 1650oz in the fourth quarter and closer to 1625oz in the first half of 2023 before bouncing we now see gold futures trading in the 16001700oz range over the next year given our new call on the fed funds rate broadly mirrors market expectations cba said aluminum was down around 1 as negative sentiment driven by declines in regional equity markets weighed but anz said losses may be limited on speculation of broad cuts to chinas output of the metal some aluminum smelters in yunnan may cut capacity by 2030 anz said citing the shanghai metals market copper prices edged lower with galaxy futures pointing to continued investor concerns over us inflation and aggressive interestrate raises by the fed which tend to attract funding away from the commodities market however it thinks copper prices are unlikely to suffer a significant decline given multiple supply issues including port disruptions due to weather conditions in eastern china which has limited copper imports domestic output is also affected by local pandemic outbreaks chinas economic activity showed signs of improvement in august beating market expectations as the governments measures to support growth started to kick in the national bureau of statistics said friday chinas industrial production in august rose 42 from a year earlier higher than the 38 increase in july the statistics bureau said economists surveyed by the wall street journal had anticipated industrial production to grow 4 last month biden orders deeper scrutiny of foreign investment in tech and supply chains washingtonthe biden administration is ordering a panel that screens foreign investment for national security risks to heighten scrutiny of deals that may give china and other adversaries access to critical technologies or may endanger supply chains and personal data an executive order signed by president biden on thursday doesnt expand the purview of the committee on foreign investment in the us rather it is intended to sharpen the interagency panels focus on administration priorities and signal to businesses the types of transactions that might deserve added screening administration officials said russian president vladimir putin said he sought to address beijings concerns thursday about the ukraine war in his first meeting with chinese leader xi jinping since the start of the conflict which has recently brought major battlefield setbacks for moscow mr putin told his chinese counterpart that moscow highly values what he called beijings balanced position regarding the ukraine crisis he added that the kremlin would clarify its position on ukraine without explaining further shells new chief has money to spend and the backing to move quickly it is as yet unclear if the oil and gas giants incoming leader will try to chart a different course from his predecessor the oil and gas giant announced on thursday that wael sawan will become chief executive at the start of next year a chemical engineer with a harvard mba the 25year shell veteran has experience across the groups product areas and around the globe and currently heads up its catch all newenergy division called integrated gas renewables and energy solutions the justice department on thursday filed an antitrust lawsuit challenging a planned 43 billion deal in which leading lockmaker assa abloy ab is seeking to acquire a us rival the civil lawsuit filed in a federal court in the district of columbia seeks to block the swedish companys planned acquisition of spectrum brands holdings incs home improvement division fedex to close offices park aircraft after warning of sales shortfall fedex corp said its quarterly revenue fell below its expectations and it was closing offices and parking aircraft to offset declining volumes of packages moving around the world fedex shares tumbled 13 on the warning which came after markets were closed thursday and about a week before the company was scheduled to report results for the quarter ended aug 31 all times in gmt powered by onclusive and dow jones write to us at newslettersdowjonescom we offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox if you would like to sign up please go to httpsnewspluswsjcomsubscriptions this article is a text version of a wall street journal newsletter published earlier today