US stocks open lower
US stocks opened lower on Thursday Wall Street braced for more big price hikes After the European Central Bank increased.
The Dow Jones Industrial Average was down 1% while the S&P 500 and Nasdaq were down 0.8%.
European Central Bank raises interest rates by 75 basis points to tackle rising inflation
On Thursday, the European Central Bank announced a 75 basis point rate hike, raising the deposit rate to 0.75%.
“This major step advances the transition from the prevailing ultra-facilitative level of policy rates to levels that will ensure a timely return of inflation to the ECB’s medium-term target of 2%,” it said in a statement.
She added that she “expects interest rates to rise further, because inflation is still very high and is likely to remain above target for a long time.”
Read the full story here: European Central Bank raises interest rates by 75 basis points to tackle rising inflation
– Jenny Reed
New British Prime Minister Liz Truss has announced a cap on energy bills to combat the cost of living crisis
UK Prime Minister Liz Truss announce A stimulus package to help Britons with high energy bills.
Truss said the average family would “pay no more than £2,500 (US$2,880) a year for each of the next two years”, which the Prime Minister added would save the average family “£1,000 a year”.
Before the announcement, energy bills were for the British Set to come in at £3,549 a year From 1 October, up from £1,971.
The stimulus package comes to more than 180,000 people in the UK I vowed to cancel their energy bill payments October 1 to protest the rise in energy prices.
– Hannah Ward Glinton
Euro rises ahead of ECB rate decision
The euro rose against the US dollar and the British pound as investors wait European Central Bank rate hike announcement.
The euro was trading 0.1% higher at $1.0015 around midday in London. On Monday, the common currency Dropped to less than 99 cents for the first time in 20 years due to energy security concerns.
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 stocks start higher today
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 a 75 basis point increase in September, up from a previous forecast of 50 basis point, 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 note 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.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”