Friday, June 10 2022

(RTTNews) – European stocks are expected to open higher on Thursday ahead of the ECB’s monetary policy decision later today.

No change in interest rates is expected, but hawkish forecasts for future stocks and any signal that asset purchases will end “early” in light of record inflation could boost the euro.

Across the Atlantic, trade could be impacted by the reaction to reports on initial jobless claims, retail sales, import and export prices and consumer sentiment.

Earnings news is also expected to attract attention, with financial giants Citigroup, Goldman Sachs and Wells Fargo among the companies due to release their quarterly results before trading begins.

Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker are due to speak as investors watch for clues about how the U.S. central bank would cut its trillions of dollars in bonds.

Comments from Fed Governor Christopher Waller on Wednesday indicated that inflation could have peaked and started to decline.

Asian markets were mostly higher after the Chinese cabinet said Beijing would use timely cuts in banks’ required reserve ratios (RRRs) and other policy tools to counter the impact of Covid-19 and boost economic growth. consumption recovery and growth.

The dollar fell slightly as US Treasury yields slowed, despite interest rate hikes from the Reserve Bank of New Zealand, Bank of Canada and Bank of Korea.

Oil fell after a two-day rally as traders weighed a bigger-than-expected rise in U.S. oil inventories against a tightening in global supply.

US stocks rose overnight as Treasury yields pulled back on the curve and investors digested the latest earnings reports from JPMorgan Chase, Delta Air Lines and Bed, Bath & Beyond.

Investors shrugged off data showing monthly U.S. producer prices rose the most in more than 12 years in March.

The Dow Jones climbed 1%, the S&P 500 added 1.1% to end a three-day losing streak and the tech-heavy Nasdaq Composite jumped 2%.

European stocks ended mixed on Wednesday as investors weighed the risks associated with soaring inflation, the ongoing war in Ukraine and an extended Covid-19 lockdown since late March in Shanghai.

The pan-European Stoxx 600 index ended flat with a positive bias. Germany’s DAX fell 0.3%, while France’s CAC 40 index and the UK’s FTSE 100 both ended slightly higher.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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