The mood in equity markets is upbeat following last night’s update from the Federal Reserve. Earlier this month the US central bank hiked interest rates by 50 basis points – meeting forecasts – and last night the minutes from that meeting were released.
Traders are a little optimistic ahead of the release of the minutes from the recent Federal Reserve meeting, where rates were hiked by 0.5%.
The euro is higher again as Christine Lagarde – the European Central Bank president - said she is attentive to the exchange rate.
Lately there has been growing chatter the European Central Bank might lift interest rates in July, and this morning, Christine Lagarde dropped a big hint that rates will be lifted.
Stock markets in Europe racked up solid gains today as the bullish close in Asia helped the mood.
The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.
Markets have fallen back into their old habits as an increase in yields has sparked a sell-off in stocks. Equity markets experienced low volatility at the start of the week and that was because US bond yields cooled, but today the 10-year yield traded above 3%, which speed up the decline in equities.
Equity markets are enjoying a rally as a bullish mood is dominate on both sides of the Atlantic.
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