Sterling problems continue ahead of UK energy support announcement
Questions about the impact of the support package on UK growth and net debt have combined with the dollar’s continued strength amid market volatility.
The euro was up 0.24% against the pound at 0.8639 before the ECB announcement, but it was down 0.17% against the dollar at 0.9986.
– Jenny Reed
European shares rise ahead of the European Central Bank meeting
Most sectors traded higher early Thursday, as energy security continued to dominate the headlines, and investors awaited the rate hike decision by the European Central Bank.
Only retail stocks saw a big drop in early trading, losing 1.67%. The oil and gas business was up 0.14% after posting losses Wednesday.
British biotechnology company sex It was the biggest gainer, up 7.9%, after posting higher earnings in full-year results.
At the other end of the scale is a French consulting and technology company Atos It decreased by 12.75%.
– Jenny Reed
The European Central Bank could unleash an interest rate hike as the economy slides into recession
The European Central Bank is expected to incur a series of interest rate hikes and sacrifice growth in the region due to the rising cost of living that threatens to rise even higher.
Remarks by ECB Executive Board Member Isabel Schnabel at Jackson Hole Set the tone for this week’s next policy meeting. With eurozone inflation expected to rise to at least 10% in the coming months and the risk of consumer prices rising, a “jumbo” rate hike of 75 basis points on Thursday is certainly a possibility.
“Since large hikes can have a greater impact on inflation expectations than a more gradual approach, a move of 75 basis points may make sense,” Holger Schmieding, ECB observer and chief economist at Berenberg said in a research note.
Read the full story here: The European Central Bank could unleash an interest rate hike as the economy slides into recession
– Holly Eliat
Wells Fargo strategist says the US dollar has legs to move higher
The U.S. dollar It has room to run even higher thanks to spreads on the back of a hawkish Fed, according to Wells Fargo Securities FX strategist Brendan McKenna.
“We think a lot of these international banks won’t be able to raise rates as aggressively as market rates,” he told CNBC’s Squawk Box Asia.
“So it’s kind of a combination of a more hawkish Fed and a less hawkish tightening cycle than international central banks supporting the dollar for the remainder of this year,” he said.
– Jie Lee
Goldman Sachs raises expectations for Fed hike this year
Goldman Sachs has revised its expectations for the upcoming Fed rate decisions.
Analysts led by Chief Economist Jan Hatzius said in a note that the company expects an increase of 75 basis points in September, up from a previous forecast of 50 basis points, as well as a 50 basis point increase in November, also revised. From the previous projection 25 basis points.
It also expects a 25 basis point increase in December – citing recent hawkish comments from officials.
The memo said Fed officials “appear to indicate that progress toward taming inflation has not been uniform or at the pace they would like,” the memo said.
– Jie Lee
CNBC Pro: The Wall Street pro predicts when the S&P 500 will rise — and reveals how it’s traded
According to market expert Phil Blancato, market volatility is here to stay.
But Ladenburg President and CEO Thalmann Asset Management sees a “solid rally” on paper as market conditions improve.
He predicts when the rally will be, and chooses his best options to trade volatility.
Professional subscribers can Read more here.
– Xavier Ong
All major averages closed higher, Nasdaq settled on 7 days of losses
Stocks rebounded on Wednesday as Wall Street sounded earlier concerns about sharp interest rate hikes coming from the Federal Reserve.
The Dow Jones Industrial Average rose 435.98 points, or 1.40%, to end the day at 31,581.28. The S&P 500 rose 1.83% to 3979.90 and the Nasdaq Composite rose 2.14% to 11,791.90, breaking a seven-day losing streak.
– Carmen Renick
European markets: here are the opening calls
European shares are expected to open cautiously higher on Wednesday, along with British stocks FTSE The index saw 18 points higher at 7,560, Germany Dax 33 points higher at 13944, France CAC 40 It rose 18 points to 6616 and Italy FTSE MIB It rose 42 points at 23,029, according to data from IG.
Data releases include Eurozone preliminary unemployment data for the second quarter as well as the GDP for the second quarter. The latest UK inflation figures for July will be released as well as preliminary Dutch GDP for the second quarter.
Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.
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