European travelers want to continue as Fed hesitates | – #European #travelers #continue #Fed #hesitates
From Tom Westbrook Europe and an outlook on the day ahead in global markets
Markets believe the Fed is almost done with rate hikes, but we’re seeing a different story in Europe.
Europe The central bank set the tone last week by sticking to a 50 basis point hike. Norges to see if the gap that traders are pricing in with the Fed today is warranted BankBank of England and Switzerland National It is on the bank.
Norges Bank Continuously since September 2021 march does, and economists believe it has at least two more 25bp hikes.
Markets expect another 50 bps each for the ECB and BoE, and see the SNB raising rates by 50 bps to 1.5% at 0830 GMT this morning.
Surprisingly hot Britain inflation appears to have dispelled any doubt that the BoE will remain in strict hiking mode today, with an 11th consecutive rate hike expected at 1200 GMT.
In Britain and on the Continent central bank The idea that executives still have work to do — despite the impact on banks’ financial conditions — contrasts with the Fed’s cautious tone.
The result so far USA and Europe to send their income in the opposite direction and sell the dollar.
Janet Yellen messed things up overnight by telling Congress that she had not considered or discussed conventional insurance on bank deposits.
But he notes that if contagion risks go well with community bank managers, even if not with shareholders, deposits in small banks could take a back seat.
Asia appears to have taken note of the Fed’s move – Treasury yields cut, the euro rose to a seven-week high above $1.09 and the yen hit a six-week high, while banking stocks were flat.
Today’s rhetoric from Threadneedle Street and Europe’s central banks may test these changes.
Reuters graphics
Key developments that could affect markets on Thursday:
In Norway, Switzerland and Britain political meetings
Consumer confidence in the Eurozone, USAunemployment claims in
Reporting by Tom Westbrook; Edited by Edmund Klamann
Our standards: Thomson Reuters Trust Principles.
2023-03-23 10:24:36
Source – reuters
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