Nervy markets await ECB rate hike, US inflation data
Traders moved into the traditional holding pattern ahead of the European Central Bank's interest rate decision later in the day.
Markets are on edge as the European Central Bank prepares its second interest rate hike of the year and awaits key U.S. inflation data, prompted by rising oil prices due to Middle East tensions. The European bond markets have seen heightened activity due to persistent high borrowing costs, while European stocks and the euro remain steady.
Analysts are watching ECB president Christine Lagarde's words for hints of potential further rate hikes. The consensus suggests a 25-basis-point increase by December, but there is a 40% probability of an additional hike next year. 30-year U.S. yields have surged to their highest level since 2007, reflecting the market's anticipation of more rate hikes ahead.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Euro gains modestly against British Pound after ECB delivers widely expected hike fxstreet.com
- Nervy markets await ECB rate hike, US inflation data freemalaysiatoday.com
