US stocks open lower
US stock markets opened lower on Thursday Wall Street is bracing for even bigger rate hikes Following the ECB’s increase.
The Dow Jones industrial average fell 1%, while the S&P 500 and Nasdaq both fell 0.8%.
– Karen Gilchrist
The European Central Bank has raised rates by 75 basis points to tackle rising inflation
The European Central Bank announced a 75 basis point interest rate hike on Thursday, taking its benchmark deposit rate to 0.75%.
“This key step represents a shift away from the levels of prevailing policy rates towards levels that ensure a timely return of inflation to the ECB’s 2% medium-term target,” it said in a statement.
It also “expects to raise interest rates further because inflation remains very high and will remain above target for a long time.”
Read the full story here: The European Central Bank has raised rates by 75 basis points to tackle rising inflation
— Jenny Reid
New British Prime Minister Liz Truss announced a cap on energy tariffs to combat the cost of living crisis
British Prime Minister Liz Truss declared A stimulus package to help Britons face rising energy bills.
Truss said the typical family would “pay no more than £2,500 ($2,880) each year for the next two years”, which the Prime Minister said would give the average family “savings of £1,000 a year”.
Before the announcement, there was an energy bill for Britons reaching £3,549 per annum From 1 October, it was £1,971.
The stimulus package comes as the UK has more than 180,000 people They promised to waive their energy bills October 1 to protest against the increase in energy prices.
– Hannah Ward-Glenton
Euro gains ahead of ECB rate decision
The euro rose against the US dollar and the British pound as investors waited ECB rate hike announcement.
The euro was up 0.1% at $1.0015 by midday in London. Monday, the shared currency Dropped below 99 cents Energy security scare for the first time in 20 years.
Pound woes 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 strength amid market volatility.
The euro rose 0.24% to 0.8639 against the pound ahead of the ECB announcement, but fell 0.17% to 0.9986 against the dollar.
– Jenny Reid
European stocks start the day higher
Most sectors traded higher early Thursday as energy security continued to dominate headlines and investors awaited a decision on rate hikes by the European Central Bank.
Only retail stocks saw significant declines in early trade, losing 1.67%. Oil and gas businesses rose 0.14% after Wednesday’s losses.
A British biotech company race It was the biggest gainer, up 7.9%, after posting higher gains in full-year results.
At the other end of the scale, the French IT firm and consultancy Atos 12.75% decrease.
– Jenny Reid
The European Central Bank could unleash a jumbo rate hike as the economy slips into recession
The European Central Bank is expected to push ahead with a series of rate hikes, sacrificing growth in the region due to the rising cost of living.
ECB Governing Council member Isabelle Schnabel’s speech at Jackson Hole Set the tone for the upcoming policy meeting this week. A 75 basis point “jumbo” rate hike on Thursday is almost certainly possible, with inflation in the euro zone expected to rise to at least 10% in the coming months and consumer prices at risk of rocketing.
“As front-loaded hikes have a larger impact on inflation expectations than a gradual approach, a 75bp move would make sense,” ECB watchdog and Berenberg’s chief economist Holger Schmiding said in a research note.
Read the full story here: The European Central Bank could unleash a jumbo rate hike as the economy slips into recession
– Holly Elliott
The US dollar still has legs to go higher, says Wells Fargo strategist
The US dollar According to Wells Fargo Securities FX strategist Brendan McKenna, a hawkish Federal Reserve has more room to move thanks to rate differentials on the back burner.
“We think many of these international banks will not be able to raise rates as aggressively as the markets are pricing in,” he told CNBC’s “Squawk Box Asia.”
“So it’s a combination of a more hawkish Fed and a less hawkish tightening cycle from these international central banks supporting the dollar throughout the year,” he said.
– Jihye Lee
Goldman Sachs raises Fed hike forecasts for this year
Goldman Sachs revised its forecasts for the upcoming Federal Reserve rate decision year.
Analysts led by chief economist John Hutchius said in a note that the company expects a 75-basis-point hike in September, up from a previous forecast of 50 basis points and a 50-basis-point hike in November, further revised up. 25 basis points from the previous estimate.
It also expects a 25 basis point hike in December – citing a recent hawkish commentary by officials.
The note said Fed officials “indicate that progress on controlling inflation has not been as consistent or as rapid as they would like.”
– Jihye Lee
CNBC Pro: Wall Street Pro Predicts When the S&P 500 Will Rally — and Reveals How to Trade It
Market veteran Bill Blancado says the market’s volatility is here to stay.
But the chairman and CEO of Ladenburg Thalmann Asset Management sees a “strong rally” on the cards as market conditions improve.
He predicts when the rally will be and names his top picks to trade the volatility.
Pro subscribers can Read more here.
– Javier Ong
All major averages are higher, Nasdaq 7-day losing streak continues
Stocks rallied on Wednesday as Wall Street looked past worries about aggressive rate hikes coming from the Federal Reserve.
The Dow Jones Industrial Average rose 435.98 points, or 1.40%, to end at 31,581.28. The S&P 500 rose 1.83% to 3,979.90 and the Nasdaq Composite rose 2.14% to 11,791.90, snapping a seven-day losing streak.
– Carmen Reinicke
European markets: Here are the opening calls
European stocks are expected to open higher in the UK on Wednesday with caution FTSE The index rose 18 points to 7,560, in Germany DAX France rose 33 points to 13,944 CAC 40 Italy, up 18 points to 6,616 FTSE MIB According to IG data, it was up 42 points to 23,029.
Data releases include euro zone unemployment data for the second quarter and second quarter gross domestic product. The latest UK inflation numbers for July and preliminary second-quarter Dutch GDP will be released.
Revenue comes from Unibur, Carlsberg, Persimmon, Balfour Beatty, PAT and National Grid.
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