Stocks slip as focus falls back on Fed

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Stocks eased on Wednesday, while the dollar was under a little pressure, as traders shifted focus from U.S. banking stress to expectations for an imminent peak in the Federal Reserve's interest rate cycle.

Traders have been tiptoeing out of bets that rate cuts will fairly swiftly follow a final hike, though remain positioned for a peak.

British and European inflation figures due later on Wednesday could add more if they make a case for hikes on the Atlantic's eastern shores to go on beyond those in the U.S. Elsewhere, Brent crude futures were steady at $84.79 a barrel, roughly where they have traded for a few weeks since OPEC+ announced surprise production cuts. Gold held above $2,000 an ounce and bitcoin above $30,000.Citi strategist Matt King warned that markets' calm may be shortlived as central banks' cash injections made to ward off worries about systemic bank risks start to wear off.

 

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