Is a great resource for investors. European market prices are expected to open lower on Thursday after investors digest another massive interest rate hike from the U.S. Federal Reserve, in advance of a series of central bank meeting regionally.
At 02:02 (ET) (06:00 GMT), the futures DAX contract from Germany was trading 0.3 percent lower. the CAC 40 contract in France decreased 0.4 percent while that of the FTSE 100 futures contract in the U.K. declined 0.3 percent.
The U.S. central bank raised the rate by 75 basis points by the close of its two-day session on Wednesday, as was widely anticipated. However the Fed also indicated it was predicting that the rate will increase by 4.4 percent by the end of the year and reach 4.6 percent by the end of 2023. It was a higher and longer path than what the markets had anticipated.
Related: European Stock Futures Edge Higher; Fed Meeting Set to Start
Fed Chairman Jerome Powell said the central bank is now prepared to take on the risk of weakening the economy while it works to control the rise in inflation. The slowdown could be more significant due to that the U.S. economy’s role as an important global growth engine.
Other central banks that are major are also set to increase rates on Thursday, in order to stop high inflation. The Bank of England as well as the Swiss National Bank as well as Norges Bank in Norway. Norges Bank in Norway all scheduled to meet on Wednesday.
The European Central Bank increased its rate of interest by 75 basis points in the last week and is expected to do so even if there is slower growth since the rate of inflation is at a high level as stated by European Central Bank board member Isabel Schnabel earlier Thursday.
On the other hand, on the other hand, Bank of Japan chose to maintain its monetary policy that is extremely loose earlier in the day, and remain committed to sustaining its economy when its inflation increases.
The most important economic data released in Europe Thursday will include consumers’ confidence numbers for the Eurozone and are predicted to show a decrease in September , to -25.8 which is down from -24.9 from -24.9 in August.
In news from the corporate world, Credit Suisse (SIX: CSGN) will likely to be the focus on Thursday following The Financial Times reported that the Swiss lender has drafted plans to break up its investment bank into three and is looking to sell profit-making units to avoid a disastrous capital raise following three years of constant scandals.
Prices for oil rose on Thursday, rebounding from a plunge to near two-week lows the previous session due to an amalgamation of inventory growth, tightening monetary policy and an increased strength of the dollar affected.
U.S. crude inventories rose by 1.1 million barrels in the last week, as per data obtained from the Energy Information Administration. Furthermore, the more hawkish stance by the Federal Reserve raised fears of the possibility of a global recession as well as pushed the dollar to its highest level in 20 years which made crude more expensive for buyers from abroad.
Related: European stocks drop sharply, and retail sales in the UK fall.
By 02:00 ET, U.S. crude futures were 0.6 percent higher at $83.41 per barrel, and the Brent contract climbed 0.6 percent to $90.34. Both contracts dropped by more than one percent on Wednesday and are expected to suffer the first loss in a quarter for more than two years.
In addition, gold futures declined 0.4 percent to $1,669.60/oz and EUR/USD fell a bit to 0.9835.
